The Association of Bureaux De Change Operators of Nigeria has appealed to the Central Bank of Nigeria to make Bureaux De Change operators payout agents for diaspora remittances.
The President, ABCON, Alhaji Aminu Gwadabe, said the apex bank should leverage the over 5,000 licensed BDCs across the country to get dollars seamlessly to beneficiaries.
He said this in a statement on Sunday titled ‘ABCON asks CBN to make BDCs payout agents for diaspora remittances’.
Gwadabe said this would help in providing a more convenient channel for Nigerians in the diaspora to remit funds back to the country to boost economic development.
According to him, the annual remittance inflow of close to $25bn is critical to Nigeria’s currency management and stability, and should be given seamless flow to the economy.
He said such funds would support Nigeria’s balance of payment position, reduce dependence on external borrowing and mitigate the impact of COVID-19 on foreign exchange inflows into the country.
He said BDCs remained the largest foreign currency operators in Nigeria, adding that making them payout agents for diaspora remittances would protect the market from forex cartel that refused to follow rules set by the apex bank.
He explained that such move would help in achieving market price equilibrium, give depth to the forex market, boost dollar liquidity in the market, enhance foreign reserves accretion and promote exchange rate stability.
The ABCON boss said it would also enhance BDCs’ operational capacity and sustainability, while solidifying the defence of the naira against other currencies.
According to Gwadabe, the need to bring BDCs into the diaspora remittances collection business has become exigent following reports of abuse by mobile money operators opposed to paying remittances beneficiaries in dollars as mandated by the CBN.
On November 30, the CBN stated that beneficiaries of diaspora remittances through International Money Transfer Operators should henceforth receive such inflows in foreign currency through the designated bank of their choice.
Gwadabe applauded the CBN’s directive as one that would put an end to malpractices perpetually making dollar scarce and keeping the local currency at the mercy of the greenback.
He said the CBN directives had helped to usher in naira rebound to N465/$ in the parallel market and should be upheld.