The Association of Bureaux De Change Operators of Nigeria (ABCON) has called on the Central Bank of Nigeria (CBN) to review the transaction margin for Bureau de Change (BDCs) above the current N2 per dollar for the sustainability of operators’ businesses.
The BDCs buy dollars from the CBN at N390/$1 and are expected to sell to end users at not more than N392/$1, representing N2 commission per transaction.
Speaking during ABCON General Meeting, held virtually in Lagos, recently, ABCON President, Aminu Gwadabe, said the sector, which commands over N1 trillion annual turnover, needs a profitable margin higher than the current N2/$1 to sustain operators’ businesses.
He disclosed the N2 per dollar margin currently earned by BDCs was not enough to sustain their operations.
He said with over 20,000 Nigerians employed by the sub-sector, there was need to support their business for sustained economic growth and employment generation.
Gwadabe who spoke on the theme: “BDCS Operations: A Trillion Naira Sub Sector, Issues of Formalisation, Regulation and Way Forward,” said ABCON will continue to support CBN’s exchange rate stability mandate through compliance with set regulations and boosting dollar liquidity.
“As a key player in the BDC industry, ABCON has for decades made several commitments to ensure that the sector continues to thrive against all odds. We are happy to announce that the licenced BDCS sub-sector is commanding N1 trillion annual turnover in the economy.
“The foreign currencies dealt in by a BDC is derived from private sources and such other sources which may include the CBN window as determined by the CBN from time to time for the purpose of funding Business Travel Allowance (BTA), Personal Travel Allowance (PTA), School Fees Payment Abroad, Medicals, mortgage and subscriptions.
“The BDCs also access dollars from other Autonomous sources such as Diaspora Remittances, walk in customers and bank sources,” he added.
He pointed out that one of the other critical mandate of the BDCs as required by CBN is exchange rate stability and boosting market liquidity, saying BDCs have over the years ensured that the market gained the needed liquidity that has ensured the exchange rate remains stable and illegal operators are put out of business.