Naira Stability in Focus as ABCON Urges Central Bank to Empower BDCs for Key Festive Forex Inflows
The Association of Bureau De Change Operators of Nigeria (ABCON) is making a strategic appeal to the Central Bank of Nigeria (CBN), calling for the support and empowerment of licensed BDC operators to bolster foreign exchange inflows and stabilize the Naira ahead of the critical festive season.
Capturing the ‘Detty December’ Dollar Windfall
In an exclusive interview with the News Agency of Nigeria (NAN) in Lagos, ABCON President Dr. Aminu Gwadabe outlined a significant opportunity. He pointed to the annual year-end surge in foreign exchange, driven by the return of Nigerians living abroad for a season of concerts, tourism, and family reunions—popularly known as “Detty December.”
Gwadabe emphasized that Bureau De Change operators, as the closest link to retail foreign exchange users, are uniquely positioned to capture more of these vital diaspora remittances. Citing official data, he noted that Lagos State alone generated an impressive $71.6 million from tourism, hospitality, and entertainment during the last festive period. Empowering BDCs, he argued, is the key to ensuring more of these earnings are retained within the local economy.
“The BDC subsector has the potential to help Nigeria realize and retain more foreign exchange if properly empowered,” Gwadabe stated. “Globally, BDCs provide liquidity at the retail end of the market and serve as agents for diaspora remittances. We can help bring home funds currently trapped abroad through unlicensed fintechs.”
A Call for Democratized Forex Access
The ABCON President made a direct appeal to the CBN to democratize access to the retail foreign exchange market. He proposed allowing licensed BDCs to source foreign currency through formal, official channels. Such a move, he contends, would sustain market liquidity, curb the wild volatility that harms the Naira, and significantly improve transparency across the board.
He drew on recent history to make his case. “Between 2017 and 2021, when BDCs were active, the exchange rate remained stable at around 365 per dollar,” Gwadabe recalled. “The CBN should leverage the BDCs to sustain market liquidity. They should be used to inject liquidity, check volatility, and help monitor activities in the parallel market.”
Gwadabe lamented that many licensed operators have been rendered redundant due to their limited access to official forex windows, a situation that has made it difficult for them to cover basic operating costs. Despite this, he expressed measured optimism that ongoing high-level discussions with the central bank would soon restore their active and legitimate participation in the retail foreign exchange segment.
Ongoing Reforms and a Path to Global Competitiveness
Behind the scenes, ABCON is working in close collaboration with the CBN to reform and strengthen the entire BDC sector. Gwadabe reaffirmed that BDCs remain a key instrument for central banks worldwide in the implementation of effective foreign exchange policies.
On the contentious issue of recapitalization, the ABCON President disclosed that the central bank is accelerating the issuance of approvals-in-principle and final licenses for qualified operators. The CBN is also encouraging mergers among smaller firms to help them meet the new capital thresholds. While the exact number is subject to CBN confirmation, Gwadabe revealed that over 200 BDCs have already registered under the new framework.
These comprehensive reforms are not just about compliance; they are designed to position Nigerian BDC operators to compete on a global scale and contribute meaningfully to the long-sought goal of exchange rate stability for the Naira.
Source: Interview with ABCON President Dr. Aminu Gwadabe via the News Agency of Nigeria (NAN).