ABCON Sends Important Message as CBN Names BDC Operators Selling Cheap Dollars

ABCON Sends Important Message as CBN Names BDC Operators Selling Cheap Dollars

  • The CBN is unhappy that some Bureau De Change (BDC) operators are manipulating the forex markets
  • Already, an operator has been identified, and the CBN is looking for others who are selling cheap dollars
  • The naira traded lower against the US dollar on Wednesday as the Presidential Election Petition Court (PEPC) affirmed Bola Tinubu's presidency

The Association of Bureau De Change Operators of Nigeria (ABCON) has reacted to the move by the Central Bank of Nigeria (CBN) to clamp down on erring Bureau De Change (BDC) operators for illegal transactions. had earlier reported that the CBN is investigating Crown Agent, a BDC operator, for selling dollars below the official rate.

Naira to dollar exchange rate
The performance of the naira in the foreign exchange market concerns the CBN. Depicted person is for illustrative purposes and has no relationship with the story. Photo credit: Tom Saater
Source: Getty Images

Punch reports that Folashodun Shonubi, the acting Governor of the CBN who disclosed this said actions will be taken soon.

His words:

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“For the last few weeks, we have been investigating and quite a few players have been bringing in money and selling at less than the official rate. One of those we have investigated recently is Crown Agent.
“We have reason to believe that, we have been working with international agencies on this. We are looking at those who do not follow through the normal system, send it through them, and sell it to Nigerian companies.
“They can expect to hear from us shortly, and they will not be the only ones. Also, BDC that cannot go electronic. I think it will soon be fading out of the system because we don’t believe that we should still be heavy into cash."

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BDC reacts to CBN move

Reacting in chat with Aminu Gwadabe, national President of ABCON, said the decision by the CBN is a welcome development, and the association is ready to give its support if needed.

He also revealed that BDCs operators have already embraced the digitisation of their office activities from manual to automation.

He said:

“I believe our members have long prepared for technology and automation where the future holds.
Our members interface with the CBN online real time for their timely rendition of returns. Our members are also integrated to the NIBSS platform for verification and validation of their clients Bank Verification Number instantly.
Our members render their suspicious transitions and cash transactions report on NFIU GoAML live.

Gwadabe stressed further that the association will not condone any sharp practices from its members, assuring CBN ABCON support.

He added:

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“It is therefore germane for any erring member to be penalized accordingly. Finally, on behalf of our members I want to express our assurances to the CBN and our readiness to be on the same page on their aspirations for the strengthening of our local currency and the elimination of volatility in the market."

CBN announces dollar to naira price verification portal

Meanwhile, in another report, it was revealed that the Central Bank of Nigeria had introduced a new portal that will put an end to malpractices in the foreign exchange market.

The portal is set to go live by the end of August 2023, and it is expected to be a game-changer if done correctly.

The analyst who spoke to explained that the portal could be a game-changer if done correctly.


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