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As economies around the globe seeks to sure-up their Diaspora remittances to aid growth and development, the Association of Bureaux De Change Operators of Nigeria (ABCON), President, Dr. Aminu Gwadabe has said that global diaspora remittances is expected to rise to $950 billion by 2025.
He said Nigeria being among the top four countries in the world, who receives remittances, should not be let out in the scheme of things. Noting that the BDCs has the structure and expertise to ensure increase inflow which is transparent and competitive.
The ABCON chairman who made this remarks on Tuesday during a parley/courtesy visit by the Finance and Business Online Publishers (FiBOP), explained that in other jurisdiction, the business of Forex, unlike in Nigeria, is not for money deposit banks.
He said, while amongst the responsibility of the BDCs, is helping to stabilize the exchange rate like it has done in the time past, it will also help the economy in terms of liquidity, nothing, when there is liquidity, the economy will be stable.
According to him, “like in UAE, all the cash need of banks is met by the BDCs, they are playing pertinent rolls in diaspora remittances. But in Nigeria, it is the bank that has the agency. What the banks licensed agent are doing is that they are making a kill. Banks are not involved in other clime because it is not attractive.”
“For banks holding position, they buy at official rate and sell at parallel market. It is cutting corners. And of course you will expect speculation to be rived and scarcity will be the other of the day, he added.
Speaking on the recent suspension of its members, accused of undermining the system in the area of security, the BDC boss said, measures so far put in place by the regulatory body in sanitizing
operations in forex dealings in the domestic economy, is highly commendable.
He said, collaboration with relevant financial agencies of government, like the CBN, NFIU, EFCC and FIRS amongst others, in creating awareness in illicit financing of terrorism, is a step in the right direction, as it will go a long way at ameliorating any incidences and further checkmating any BDC operator involved in undermining the Nigeria security system.
He said, with 5,600 memberships strength, “our SRO is to ensure safety framework. We are the gateway in the fx industry. We are the weak link in the industry. Supervision becomes difficult due to the high number, or proliferation of the members body. So training and retraining is key to development.”
Gwadabe who acknowledged as good, reforms ongoing in the industry, called for caution as it relates to the N35 million capitalization base benchmark for members, noting, “We are not afraid of it. Don’t use capitalisation of N35 million as the benchmark. In UK and Kenya, you don’t need high capitalisation to operate. Forex operations should not be for the highest bidder. Anybody that don’t want merger should be shown the way out. They have structure and the expertise to run the business.
The BDC boss said while the vision of the organization remains helping to eliminate volatile exchange rate, further acknowledged that most demand for hard currencies are not genuine hence they do not add value to the economy.
He explained that, the organization is currently retooling its operations for optimum business transaction and efficiency. “We are linked up to DATA PRO and the NFIU to checkmate any terrorism financing as part of our KYC operations.
The BDC boss, who further sought for increased collaboration between agency of government and the BDC, said there is greater need to allow the remittance flow through the BDCs to reach the grassroots.
