BEVERLY HILLS, December 29, (THEWILL) – Amid controversies trailing the recent Central Bank of Nigeria (CBN) policy on diaspora remittances, the Association of Bureaux De Change Operators of Nigeria (ABCON) has appealed to CBN to make Bureaux De Change (BDCs) payout agents for diaspora remittances.
In a statement signed by ABCON President, Alhaji Aminu Gwadabe, the group urged the central bank to leverage on the over 5,000 licensed BDCs across the six geopolitical zones of Nigeria to get the greenback easily accessible to beneficiaries.
Gwadabe said the plan would help in providing a more convenient channel for Nigerians in the diaspora to remit funds back to the country to boost economic development.
In an exclusive mail to THEWILL, Gwadabe emphasized that the measure would make the dollar more accessible to the beneficiaries, leveraging on the size and numerous outlets of the BDC operators across the country.
“They should make BDCs payout agents to enable accessibility of the greens by the beneficiary.
“The BDCs combined together with over 5,000 outlets and the biggest in the market can conveniently close the gaps of the mobile money operators,” Gwadabe said.
The benefits, he said, are many and impactful, he said.
It will help in “achieving market price equilibrium, increased liquidity, buffers accretion, enhancement of BDCs’ capacity, sustainability of operations, exchange rate stability, confidence and defence of our local currency and improving investors’ confidence,” the ABCON boss outlined in a mail to THEWILL.
He pointed out that the CBN policy directives on diaspora remittance have helped naira rebound from N500/$ to N465/$.
Gwadabe had argued in an earlier statement that the annual remittance inflow of close to $25 billion was critical to Nigeria’s currency management and stability and should be given seamless flow to the economy.
According to him, such funds would support Nigeria’s balance of payment position, reduce dependence on external borrowing and mitigate the impact of COVID-19 on foreign exchange inflows into the country.
He observed that the need to bring BDCs into the diaspora remittances collection business had become exigent following reports of abuse by Mobile Money Operators (MMOs) opposed to paying remittances beneficiaries in dollars as mandated by the CBN.
The CBN had on November 30, 2020, stated that beneficiaries of Diaspora Remittances through International Money Transfer Operators (IMTOs) should then receive such inflows in foreign currency (US Dollars) through the designated bank of their choice.
Gwadabe applauded the CBN’s directive, saying it would put an end to malpractices perpetually making the dollar scarce and keeping the local currency at the mercy of the greenback. He said the CBN directives have helped to usher in a Naira rebound to N465/$ in the parallel market and should be upheld.
Members of the Association of Licensed Mobile Payments Operators (ALMPO) have been putting pressure on CBN to change its policy directives on payment of diaspora remittances.
The chairman of the Association of Licensed Mobile Payments Operators (ALMPO), Jay Alabraba recently appealed to the apex bank to change its policy directives on payment of diaspora remittances, claiming that the development would impact negatively on the operations of his group.
Mr. Alabraba described the CBN’s instruction as a “serious worry” for their business and suggested that the apex bank’s decision “may have been a temporary measure”.
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