Raise BDCs’ Transaction Margin Above N2/$, ABCON Asks CBN
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 Bureaux 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, 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.
Also speaking, CBN Director, Williams Kanya, said the event has the backing of CBN Governor, Godwin Emefiele. He said the apex bank acknowledges the support of BDCs under ABCON, adding that the apex bank has key interest in ABCON operations.
Acting Associate Director, Nigerian Financial Intelligence Unit (NFIU), Mohammed Jiya, urged BDCs to always file their returns on time, and even where there are no transactions to report, they can file reports.