The Association of Bureau De Change Operators of Nigeria (ABCON) has urged the Central Bank of Nigeria (CBN) to grant autonomy to Bureau de Change (BDC) operators to transition to digital platforms.
This request aligns with the CBN’s technology reforms for BDCs aimed at rate convergence and ABCON’s ongoing digitization efforts, which started in 2016.
Nigerian BDC operators push for digital modernization
ABCON emphasized that exchange rate volatility has hindered Nigeria’s economic growth, making the need for modernization in the BDC sector critical.
The association called for diversification of BDC operations and business models, shifting from cash-based transactions to less cash and digital platforms.
ABCON highlighted its prior initiatives to embrace technology, including launching a vision for BDC digitization in 2018 and investing significantly in IT research and development.
Its members have transitioned to real-time online transactions, automated reporting, and integrated with the Nigeria Inter-Bank Settlement System (NIBSS) for BVN verification and validation.
The benefits of granting autonomy to BDCs include promoting true market rate discovery, aligning with government forex policies, enhancing transaction monitoring compliance, centralizing the market for BDCs to act as moderating mechanisms, generating employment opportunities, and ensuring transparency and accountability.