Bureaux De Change (BDC) operators have declared support for the proposed Task Force Committee of the Association of Bureaux De Change Operators of Nigeria (ABCON) to monitor compliance by its members and clampdown defaulters
In a statement made available to Ripples Nigeria on Monday after a meeting of BDC Directors organised by the Association of Bureaux De Change Operators of Nigeria (ABCON) in Lagos, the directors charged the Association to punish any operator involved in street trading of forex.
While observing that the guidelines for BDC operations require that all licensed BDCs operate inside their registered offices, the directors called on the Association to penalise any operator that contravenes the guidelines of the Central Bank of Nigeria (CBN) for the subsector.
Meanwhile, the stakeholders stressed the need for the CBN to increase the sales margin of BDCs, noting that the N2 margin presently allowed by the apex bank is inadequate given the operating cost of BDCs as well as the rising inflationary trend in the country.
Also, they highlighted the need for the CBN to expand the operating scope of BDCs to allow for more business revenue to cover their operating cost.
In his remarks, the President of ABCON, Dr. Aminu Gwadabe, charged the BDC directors to protect the huge money invested in their BDCs by ensuring their staff operates within the approved guidelines of the CBN.
According to him, this has become imperative to protect the BDC business, especially the weekly dollar sale by the CBN.
Noting that the least investment in any BDC is about N35 million, he called for increased supervision by directors, to detect and forestall any activity that could lead to the loss of such investment.
The ABCON Chairman for South-West Zone, Taiwo Ebenezer, charged directors to be involved in the day-to-day activities of their BDCs and to relate regularly with their staff.
Among other things, he noted that BDC directors must know the sources of funds paid into their corporate accounts, while also ensuring weekly operational reports from their staff.
On his part, ABCON Vice President, Azubuike Igbokwe listed unauthorised transactions for BDcs to include, funds transfer, donations to political parties, funding of importation, and funding of terrorism activities.
He said the penalty for unauthorised transactions include N5 million fine, exclusion from forex bidding, or revocation of the operating licence, he charged the directors to always validate the BVN of their customers to ensure their identity and activities as a way of ensuring their BDCs are not unconsciously or indirectly used for any of the unauthorised transactions.
By Victor Uzoho
Join the conversation
INVESTIGATION… Ten years after, communities count losses as AfDB, Cross River govt abandon road project
Ten years after the Cross River State government and African Development Bank (AFDB) jointly awarded the Yahe-Wanokom-Wanikade-Benue border road for...
INVESTIGATION….N.3bn down the drain: Why water projects for Enugu communities don’t work
In this concluding part, ARINZE CHIJIOKE talks about some of the projects that are serving the people and how various WASH programmes have failed to tackle...
INVESTIGATION…PARKVIEW ESTATE: Exclusive images of how billionaire property developer incurred Lagos govt‘s anger
Many have seen the demolished building, but not many know the circumstances that led to the teardown of the about...
INVESTIGATION… N.3bn down the drain, as Enugu communities suffer from dry taps
In November 2020, three organizations and the Enugu State government celebrated the completion of N300 million worth of projects that were expected...
INVESTIGATION… How herdsmen crisis compounds woes of already deprived Ogun communities
Earlier in January, the Nigerian media space was awash with reports of violence between herders and farmers across the country....