ABCON to bargain with CBN over Diaspora remittances operational guidelines

The Association of Bureaux De Change Operators of Nigeria (ABCON), which was previously barred from participating in the Central Bank of Nigeria’s weekly dollar rationing, is willing to renegotiate terms with the bank in order to connect with investors and Diaspora remittances.

Nigeria’s Diaspora remittances, estimated at $17.6 billion dollars, have become a viable foreign exchange option for BDCs.

President of ABCON, Mohammed Aminu Gwadabe, said in an interview that the organization is ready to renegotiate terms with the CBN to provide members official status as licensed payout agents for Diaspora remittances.

The apex bank announced the immediate ban of foreign currencies sale to BDC operators as part of measures to cut their excesses.

Consequently, many of the 5,500 licenced operators who relied on the $20,000 weekly intervention went out of business.

“Irrespective of whatever the accusation is, the BDC remains the potent tool of foreign exchange regulation. From 2006 till the time of the suspension in July 20221, the Bureau De Change has been used to regulate the foreign exchange in the market,” Gwadabe told THE WHISTLER.

He added, “As an association, we support any measure in ensuring that there is compliance but when the compliance level is turning to below, it is good for the CBN to take any measure.

“But however, it shouldn’t be a measure that will throw the baby and the bathwater. My advice is that we can’t continue to imagine what happened yesterday. We have to be proactive and adaptive and retool.