ABCON asks CBN to make BDCs payout agents for diaspora remittances

The Association of Bureaux De Change Operators (ABCON) has urged the Central Bank of Nigeria (CBN) to make Bureau De Change Operators payout agents for foreign remittances in the country.

Aminu Gwadabe, ABCON’s president, said in a statement issued on Sunday and titled: ABCON Asks CBN to Make BDCs Payout Agents for Diaspora Remittances that the regulator should take advantage of the more than 5,000 licenced BDCs in Nigeria in getting remittances to beneficiaries without hitch.

It would enable Nigerians sending money home from abroad to do so more conveniently, the ABCON chief added.

Abuja-based CBN in November ordered banks to henceforth pay the beneficiaries of diaspora remittances through international money transfer operators in dollars in a move targeting improved supply of the United States currency. Prior to then, recipients were paid naira equivalent.

Gwadabe is optimistic that funds remitted from abroad will bolster the country’s balance of payment, minimise external borrowing dependence and ease the weight of the coronavirus crisis on forex inflows into Nigeria.

Nigeria’s yearly remittance inflow of $25 billion is significant to currency management, the ABCON boss said, noting that it should be given free, unhindered movement into the economy.

The push is expected to help stimulate dollar liquidity, attain market price equilibrium, enhance depth in the currency market, boost foreign exchange accretion and maintain exchange rate stability.

There have been reports of non-compliance with payment of remittances to beneficiaries in dollar by mobile money operators as directed by the CBN, a trend Gwadabe hopes could be reversed by involving BDCs in diaspora remittances settlement.

Gwadabe said the move would further strengthen the operational capacity as well as the sustainability of BDCs, while shoring up naira against other currencies.