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ABCON seeks CBN approval to become a payment agent for diaspora remittances to Nigeria

ABCON President, Aminu Gwadabe says the plan would help to provide a more convenient channel for Nigerians in the Diaspora to remit funds to the country to boost its economic development.

The Association of Bureaux De Change Operators of Nigeria (ABCON) has appealed to the Central Bank of Nigeria (CBN) to make Bureaux De Change (BDCs) payout agents for Diaspora remittances, according to a This Day report.

ABCON President, Alhaji Aminu Gwadabe, made the request in a statement obtained at the weekend. He urged the central bank to leverage on the over 5,000 licenced BDCs across the six geopolitical zones of Nigeria to get the greenback seamlessly to beneficiaries.

Image Source: Jioforme

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.

According to the ABCON boss, 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.

Such funds, he added, 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 said BDCs remains the largest foreign currency operators in Nigeria, hence making them payout agents for Diaspora remittances will protect the market from forex cartel that refuse to follow rules et by the apex bank.

He explained that such move, would help in achieving market price equilibrium, give depth to the forex market, boost dollar liquidity in the market, enhance foreign reserves accretion and promote exchange rate stability.

According to Gwadabe, the need to bring BDCs into the Diaspora remittances collection business has become exigent following reports of abuse by Mobile Money Operators (MMOs) opposed to paying remittances beneficiaries in dollars as mandated by the CBN.

Gwadabe insisted that for Nigeria to get the full value of what is due to her in the remittance market, BDCs have to be included in the remittances payment channels and allowed to receive funds from Nigerians in Diaspora.

Nigeria In Focus:

Population: 206.6 million (Compared to South Africa's 59.6 million)

GDP: $504.57 billion (Compared to South Africa's $369.85 billion)

GDP Per Capita: $2,465 (Compared to South Africa's $6,193)