The Association of Bureaux De Change Operators of Nigeria (ABCON) has made a fervent appeal to the Central Bank of Nigeria (CBN) for a significant shift towards digital operations, aiming to democratise and centralise their activities. In an interview on Sunday, ABCON President Alhaji Aminu Gwadabe emphasised the importance of embracing technology in light of the CBN’s planned reforms on Bureaux De Change (BDCs).
Gwadabe called on the CBN to diversify the scope of operations for BDCs from cash-based transactions to encompass digital platforms. He highlighted ABCON’s proactive approach to digitization through its exchange rate platform, naijabdcs.com, which was launched in 2018. ABCON has invested significantly in IT research and development, leading to the automation of various aspects of business operations, transforming them from manual to digital.
Members of ABCON now possess transaction monitoring systems equipped with IT office equipment and internet connectivity at their locations. This automation allows for real-time recording of transactions on AWS I-Cloud and facilitates the extraction of daily reports for regulatory purposes. Furthermore, BDCs have established online real-time interfaces with the CBN.
Gwadabe pointed out that, in 2019, BDCs were integrated into the Nigerian Inter-Bank Settlement System (NIBSS) client’s BVN verification and validation platform for conducting transactions with their members. Additionally, BDCs have registered on the GoAML and Nil-returns platforms in collaboration with ABCON and the Nigerian Fraud Intelligence Unit (NFIU). This registration allows them to report suspicious transactions and cash thresholds in compliance with Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) obligations. Each BDC has also appointed a Compliance Officer and executed a compliance undertaking.
ABCON, as a regulatory organization, believes that BDCs play a crucial role in implementing the CBN’s foreign exchange policies, evidenced by their role in achieving rate convergence in 2006, 2009, and 2018-2020, before the COVID-19 outbreak in 2020.
Given these accomplishments, ABCON is urging the CBN to grant BDCs autonomy to embrace digital payments, which would contribute to rate convergence and market transparency. This move would also align with the Federal Government’s harmonized foreign exchange rate policies and enhance the effectiveness of BDCs’ transaction monitoring systems while ensuring compliance with statutory and regulatory requirements.
The autonomy sought by ABCON would not only promote transparency and accountability but also create additional employment opportunities for over 40,000 employees directly and indirectly involved in the BDC sub-sector. Overall, this shift towards digital autonomy is expected to centralise and harmonise the foreign exchange market, positioning BDCs as a moderating and correcting mechanism for the market.
ABCON’s appeal to the CBN underscores the need for digital transformation in the BDC sub-sector to achieve rate convergence, market transparency, and regulatory compliance. The move is expected to have a positive impact on Nigeria’s foreign exchange landscape and employment opportunities.
