Association of Bureau De Change Operators of Nigeria (ABCON) has called for stronger support and empowerment of its members to enhance foreign exchange inflows during the year-end festive season.
ABCON President, Dr Aminu Gwadabe, made the call during an interview on Sunday in Lagos.
He said that Bureau De Change (BDC) operators, being closest to retail forex users, could play a vital role in stabilising the Naira and capturing more diaspora inflows.
Mr Gwadabe noted that a significant volume of foreign exchange enters the country toward the end of the year through Nigerians in the diaspora who return home for festivities, popularly known as “Detty December.”
The period, he said, is marked by concerts, tourism, and family events that attract diaspora visitors and boost economic activities.
Citing official figures, Mr Gwadabe said Lagos State alone generated 71.6 million dollars in 2024/2025 from tourism, hospitality, and entertainment during the festive period.
“The BDC subsector has the potential to help Nigeria realise and retain more foreign exchange if properly empowered. Globally, BDCs provide liquidity at the retail end of the market and serve as agents for diaspora remittances. We can help bring home funds currently trapped abroad through unlicensed fintechs,” he noted.
Mr Gwadabe urged the Central Bank of Nigeria (CBN) to democratise the retail segment of the foreign exchange market by granting BDCs access to foreign currency through formal channels.
He added, “The CBN should leverage the BDCs to sustain market liquidity. Between 2017 and 2021, when BDCs were active, the exchange rate remained stable at around N365 per dollar. BDCs should be used to inject liquidity, check volatility, and help monitor activities in the parallel market.”
The ABCON president lamented that many licensed operators were redundant due to limited access to official forex windows, leaving them unable to meet running costs.
He, however, expressed optimism that ongoing engagement with the CBN would soon restore their active role in the retail FX market.
“Globally, BDCs remain a key tool for central banks in implementing foreign exchange policy. We are working closely with the CBN to ensure a stronger, reformed BDC structure,” he said.
On the ongoing recapitalisation exercise, Mr Gwadabe stated that the apex bank was fast-tracking the issuance of approvals-in-principle and final licences for operators.
According to him, the bank is also encouraging mergers among smaller firms to meet new capital requirements.
“Over 200 BDCs have registered under the new framework, but the exact figure can be confirmed from the CBN. The reforms will position BDCs to compete globally,” he added.
(NAN)
Discussion about this post