The Association of Bureaux De Change Operators of Nigeria (ABCON) has advocated for mergers within the Bureaux De Change (BDC) sector as an alternative to recapitalization.
This move aims to enhance corporate governance and align with the Central Bank of Nigeria’s regulations.
ABCON recommends merging 10 BDCs
ABCON, which had previously recommended a merger approach for class ‘A’ BDCs in 2007/2008, suggests forming new capital of N350 million by merging at least 10 BDCs.
This strategy is expected to broaden operational capabilities, reduce regulatory pressures, and position BDCs for a more significant role in the financial system, including handling diaspora remittances and offshore funds to enhance forex access in the retail market.
ABCON President, Alhaji Aminu Gwadabe, emphasized the importance of supporting the BDC business for economic growth and job creation, highlighting the sector’s compliance with reporting requirements for suspicious transactions as directed by regulatory bodies.