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  • ABCON seeks SEC’s guidance, collaboration in harmonising digital currency

    ABCON seeks SEC’s guidance, collaboration in harmonising digital currency

    The Association of Bureaux De Change Operators of Nigeria (ABCON) has called for Securities and Exchange Commission (SEC’s) guidance and collaboration in harmonising peer-to-peer (P2P) forex sector in the country.

    In an official courtesy visit to the newly appointed SEC Director-General, Dr. Timi Agama, the President of Association of Bureau de Change Operators of Nigeria, ABCON, Aminu Gwadabe congratulated the SEC D-G on his appointment by Mr President his excellency Bola Ahmed Tinubu and quickly highlighted that SEC regulates the sector that is a threat to the continued existence of BDCs in Nigeria through online virtual transactions platforms which gives access to millions of Nigerians to trade in foreign exchange without trace and accountability.

    He also explained that ABCON has invested in requisite technology to ensure the continued existence of the business and preserve the integrity of the sub-sector. He opined that the future of BDC’s business is digital currency. The National President of ABCON said that the meeting with the SEC DG and the present executive board of the SEC was a follow up on the earlier online virtual consultation.

    Gwadabe said: “ABCON is the umbrella body for all licensed retail foreign exchange dealers, which came into existence in 1991. Our objective is to liaise with our regulators, relevant stakeholders and security agencies as one cannot divorce the retail exchange market from the ecosystem of foreign exchange market seeing that BDC market is global and have been in operation before our independence. It has been there before the creation of the central bank of Nigeria”.

    Gwadabe explained that the system came under regulation in 1986 during the administration of former President Ibrahim Babangida, who felt the need to formalise the sector through the issuance of license by the then ministry of finance with the objective to formalising the informal sector.

    Gwadabe said that as at today there is over 34 million Nigerians dealing in digital currency and the number is rising by about 9% with a huge market of $9billion annually and there are thousands of multichannel virtual currency fx platforms and none is indigenous to Nigeria. P2P represents individual to individual transaction. · He emphasised that innovation can only be guaranteed on trust.

    Dr Timi Agama the SEC DG responded with a robust understanding of the ABCON chairman’s speech

    He said: “I understand that ABCON is desirous of setting up a digital market platform with the intention to be part of the emerging digital currency ecosystem in Nigeria. We at the SEC are open to help the sector grow for the love of the country therefore there will be meetings with the relevant departments of the SEC to detail methods and strategies that will strengthen the Naira through necessary innovative ideas as shared by ABCON.”

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    “The SEC DG also reiterate that there are new rules put in place to accommodate local intellectuals to develop digital platforms therefore the SEC will cooperate with ABCON in order to achieve the desired objectives. Dr Timi who is highly knowledgeable about the virtual currency market and the market makers directed that proposed ABCON presentation and the development of ABCON digital market model named Koletyomoni to be finalised as quickly as possible as there are other interests working underground and should be forwarded to SEC technical team for study and timely review. Dr Timi did not forget to emphasise on the powers of the government through the SEC and that the agency will not hesitate to use its powers where necessary to keep sanity in the issuance, marketting and trading of securities in Nigerias capital market”.

    ABCON’s technical partner Mr Oluwasegun Kosemani thanked the DG Dr Timi and his intelligently experienced SEC team which had oMr Wale Ajomale for their warm reception and listening to ABCON while making it known to SEC that much resources have been allocated to the research and development of the platform and that we are working on collaborating with every emerging verifiable blocks of the blockchain and cryptocurrency ecosystem in Nigeria like BICCoN, CDIN, SIBAN, DCC, Bitcoin organisations, local peer to peer exchanges and merchants etc.

    He continued by saying ABCONs wealth of experience, operations, KYC, Compliance AML all combined in developing the platform which the main objective is to harmonise data, ensure all digital FX merchants whether USDT, crypto-bitcoin come under a very viable and visible platform that would discourage foul play and certainly government would receive substantial revenue from the transparent legitimate transactions the platform will be facilitating by way of convenience of use tax paid by the operators and clients.

  • BDCS mull harmonised retail end forex market

    BDCS mull harmonised retail end forex market

    • ABCON: Move will halt volatility, enhance regulatory compliance

    The Association of Bureaux De Change Operators of Nigeria (ABCON) is working on establishing a unified retail end forex market operations to tackle volatility and boost regulatory compliance within the Bureaux De Change (BDC) sub-sector.

    In a statement, ABCON President, Aminu Gwadabe, said ABCON is carrying out strategic plans meant to unify operators from different cadres of the market including inauguration of state chapters for markets coordination, integration and administering a united market structure.

    He said that ABCON plans to extend its automation policies and platforms to all BDC operators across Nigerian markets and upgrading its Business Process Platform-(formerly called SAAZ Master).

    He said the new blueprint for a united retail end forex market structure will ensure the deployment of a centralised, democratised and liberalised online realtime trading platform.

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    He stated that the association will sustain its engagement with regulatory agencies, security operatives and other government apparatus to entrench a secured and thriving forex market that is supportive to regulation and government.

    Gwadabe said: “Part of our vision for a united retail-end forex market include activating geo mapping and automated BDCs physical office verification exercise using the Remote Gravity Physical verification apps. This will enable forex buyers to easily locate where BDCs offices are for effective and seamless transactions”.

    He reiterated the benefits of a realistic and vibrant retail end forex market as supporting Central Bank of Nigeria (CBN’s) goal of achieving true price discovery for the naira, balancing of international obligations and national objectives; ensuring ease of regulation, security agencies monitoring and supervision as well as entrenching market visibility for BDC players.

    According to Gwadabe,  the vision for a united retail end forex market will help in the provision of market intelligence reports, enhance the local and global image of the BDCs and other stakeholders, market operators and boost employment generation.

    The successful execution of this plan, Gwadabe said, will help in seamlessly capturing revenues for government through  digitised retail end market and creating a well structured, transparent and competitive platform to checkmate the menace of unlicensed platforms like Binance, Aboki FX, ByBit among others.

  • ABCON urges CBN to restrict manufacturers violating FX policies from official windows

    ABCON urges CBN to restrict manufacturers violating FX policies from official windows

    Bureau De Change (BDC) operators have asked the Central Bank of Nigeria (CBN)  to restrict manufacturers and other businesses abusing forex policies from accessing dollars at the official windows.

    President, Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe, said the apex bank took the right steps in its directive stopping the use of Non Export Domiciliary Account Collateral for naira loans. He said the move will boost dollar liquidity, support reserves accretion and strengthen the financial services sector.

    According to the CBN directive to banks, the use of foreign currency-denominated collaterals for Naira loans is now prohibited, except in cases where the collateral is in the form of Eurobonds issued by the Federal Government of Nigeria or guarantees provided by foreign banks, including Standby Letters of Credit.

    Gwadabe described the move as a welcome development, expected to put the excesses of big businesses and manufacturers putting unnecessary pressure on the forex market in check.

    He said: “ABCON members are bewildered that some companies and manufacturers with billions of dollar balances in their non-oil export domiciliary accounts  use it as collateral for naira loans and still source forex in the official window thereby depleting what is available for other operators. The stoppage of this unprofitable practice will not only add to the dollar liquidity in the market but also help in the accretion of foreign reserves buffers,” he added.

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    Gwadabe advised the apex bank to the review foreign currency holding guidelines for non-oil export domiciliary accounts proceeds and entrench maximum of 48 hours with a minimum balance of $5,000 for individual and $50,000 for companies in holding positions as practiced in South Africa.

    The ABCON chief further advised the CBN not to approve forex requests by manufacturers and other business applicants with billions of dollars holdings in Non export oil proceeds domiciliary accounts at both the NAFEM and NAFEX window.

    ABCON boss explained that unfortunately,  the BDCS are most times seen as crude but remains an effective market control mechanism with the potent transmission mechanism tool in achieving the CBN’s mandate of price stability and liquidity in the markets.

  • ABCON chart path on naira stability

    ABCON chart path on naira stability

    Worried by the continuous depreciation of the naira in official and parallel markets, the Association of Bureaux De Change Operators of Nigeria (ABCON) yesterday presented what the group described as pathway to exchange rate stability.

    ABCON President, Dr. Aminu Gwadabe, who spoke in Lagos said achieving stable, strong and virile exchange rate in Nigeria would require full participation of Bureaux De Change (BDCs) in the retail segment of the forex exchange market.

    He said that Nigeria has, under the current leadership at the Central Bank of Nigeria (CBN), all it takes to achieve a strong and stable exchange rate and build a highly liquid forex market that supports the domestic economy.

    He said the  challenges confronting the nation’s forex market and depreciation of the naira require all hands to be on deck, and the BDCs, which are licensed to play at the retail end of the forex market should be fully involved in providing lasting solution to the ongoing volatility in the exchange rate.

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    Gwadabe said the continuous depreciation of the naira in both official and parallel markets does not benefit the BDCs and the domestic economy, hence steps should be taken to reverse the trend and strengthen the local currency for maximum impact on the economy.

    The naira on Tuesday  crossed N1,100 to dollar mark at the parallel market even as it continues to weaken considerably at the official market due to persistent dollar scarcity and speculative activities of illegal forex dealers.

    He said the several measures by the apex bank to bridge exchange rate gaps showed genuine intentions of the regulator to entrench exchange rate stability, but getting the BDCs involved in the solution recipe will bring the desired results of not only a highly liquid market, but stable rates.

    Gwadabe said that like every other segment of the market, the illiquidity in the market remains a major concern to the BDC sector.

    He said aside illiquidity in the market, the ABCON is not happy with the unlicensed forex dealers who are at the centre of speculative activities, and attracting negative image to the sub-sector.

    He said ABCON can only continue to educate the general public against patronizing the illegal forex dealers because the suspension of the Self-Regulatory Organization status of ABCON makes it difficult for the group to directly sanction the illegal operators.

    He said enforcement of regulatory sanctions against non-compliance with guidelines are expected to be  prompt and stiff against erring members as a deterrent to others.

    On recapitalisation, ABCON boss said BDCs business is not capital intensive as they do not take deposits or lend funds to customers. The operators are licensed to buy and sell forex at the retail end of the market to buyers, who already have their funds ready for the transaction.

    This,  he explained buttresses the fact that BDCs do not need more than the approved N35 million capital base  to operate efficiently and profitability.

    He said what BDCs need is consolidation through mergers of operators and not recapitalization of the industry. Recapitalisa, he said,  may edge out professionals and highly experienced operators whose valued industry knowledge will help stabilise the market.

    In terms of digitisation and the vision of the new cbn management on evidence base decision making,Gwadabe said CBN-licensed BDCs have digitized their operations to ensure that rendition of reports are done digitally on ABCON’s automation portal.

     The BDCs now record their transactions on Amazon Web Service (AWS) online real time and extract daily reports for return rendition

    Gwadabe said the ABCON  recommended that the apex bank approve its overdue request that BDCs be made agents through which over $20 billion annual inflows from the diaspora enter the economy. Securing such regulatory approval  will boost dollar liquidity and strengthen the naira.

    “We at ABCON advise that BDCs should be allowed to access dollars or diaspora remittances through the autonomous forex windows like allowing operators to receive IMTOs proceeds, carrying out online dollar operations and Point of Sale (PoS) Agency, among others,” he said.

    Gwadabe said the Diaspora remittances remain a low hanging fruits for the apex bank and tapping the full potentials would require creating multiple channels of inflows to make it easier for Nigerians in diaspora to send funds home.

    He said other issues around training for BDCs operators and stronger regulatory oversights are key in getting the BDC sub-sector to position of strength and maximum value addition to the Nigerian forex market.

    “We therefore advise our members to avoid currency substitution, speculation as erring operators risk heavy loses from any illegal economic behavior,” he said.

  • ABCON advises BDCs to activate 4,000 official e-mails

    The Association of Bureaux De Change Operators of Nigeria  (ABCON) has advised over 4,500 Central Bank of Nigeria (CBN)-licenced Bureaux de Change (BDCs) to create or activate over 4,000 official/corporate emails on its platform and stop use of Yahoo and Gmail for official communication.

    Briefing financial journalists on the development in Lagos,  ABCON President, Alhaji Aminu Gwadabe, said the advice followed a circular from the Other Financial Institutions (OFIs) Department of CBN, directing all OFIs, including BDCs, to adopt corporate e-mails for their communication with the apex bank.

    He said: “We are  also glad to inform the gathering that over 1,000 BDCs in the Southwest have been integrated with the new CBN Forex return rendition platform. In due course, our members in the other zones shall be integrated to achieve online real time return rendition to CBN from the comfort of their offices. ABCON  has created over  4,000 official emails on its platform  www.abconng.org  for its members to enhance compliance.”

    Gwadabe said ABCON proactiveness in the automation of its members’ operations has paid off as all BDCs now have opportunity to re-active their official e-mails on the ABCON platform. “ABCON advises all members to activate their emails on the automation platform to enable them comply with the CBN circular. All members are to visit national and zonal secretariats for further enquiry and assistance, where necessary,” he added.

    The ABCON boss said the rising threats of cyber-security attacks on the financial system means that all stakeholders, including BDCs, must be proactive to protect their data, businesses, reputation and overall operations from cyber attackers.

    He said e-mails have remained the weakest link on cyber attacks and BDCs under his leadership will continue to upgrade their IT systems to ensure that they are ahead of the cyber criminals.

    Continuing, he said banks, OFIs, digital wallets and remittance players are prime targets by cyber criminals seeking quick monetisation of stolen credentials.

    “It is, therefore, important that we do not relent in our efforts at protecting this space and increasing public confidence in financial system,” he said.

  • ABCON backs CBN’s Clean Note Policy

    The Association of Bureaux De Change Operators of Nigeria (ABCON) has given its support to the Central Bank of Nigeria (CBN) Clean Note Policy and Banknote Fitness Guidelines meant to remove dirty, mutilated and unfit Naira notes in circulation from the financial system.

    Speaking yesterday to financial journalists in Lagos, ABCON President, Aminu Gwadabe, said the launch of the CBN Clean and Banknote Fitness Policy today is not only apt, but timely giving the high volume of unfit and dirty notes in circulation across the country.

    He said the policy will discourage the attitude of the public in stashing naira notes in their homes and farms as witnessed recently.

    He said the policy will also increase the level of money supply in the economy, and subsequently  deepen the volume and value  of credit available to real sector operators and other major segments of the economy.

    According to Gwadabe, the policy entails diverse currency management plans geared towards the efficient circulation of premium quality banknotes and withdrawal of unfit/soiled banknotes. This, he added, will guarantee public confidence and usage of the naira banknotes as a medium of exchange.

    According to him,  the move by the apex bank to sanitize the estimated 7.9 trillion  Naira pieces in circulation will enhance transparent currency management system, promote financial inclusion and enhance confidence of the informal sector in the financial system.

    The ABCON boss said that the CBN has through the new policy plans, demonstrated its commitment to seamless payment system adding that the regulator has the obligation of providing adequate supply of clean banknotes to facilitate efficient payment and settlement of transactions by the public, government and banks.

    He said the policy remains the first step in its bid to address the sorry state of the notes in circulation and create a new culture for better handling of the local currency.

    He explained that the clean note policy provides a uniform standard for the circulation of only clean and fit banknotes in the economy adding that the banknote fitness guidelines provide the industry with clear and acceptable criteria for determining the quality of notes in circulation.

    He said the policy guidelines is backed by the Sections 18, 20 & 21 of the CBN Act 2007 which prohibits the counterfeiting, sale and abuse of the naira.

  • ABCON seeks implementation of power sector reforms

    Association of Bureaux De Change Operators of Nigeria (ABCON) has called for radical implementation of the power sector reform program to ensure access to stable electricity supply for households and businesses.

    The group also urged BDCs to apply the principle of currency diversification to mitigate the risk of currency fluctuations arising from uncertainties from socioeconomic and political development in the United States and in Europe.

    It made the call in its Quarterly Economic Report for the first quarter of 2019.

    The association noted that Nigeria’s score of 35 in terms of ease of getting electricity, as indicated by the World Bank Ease of Doing Business report, is lower than the average for  Sub-Saharan Africa and much lower than other comparable middle-income countries, with South Africa having  a score of 63 and India having  a score of 85.

    It stressed that access to stable electricity is one of the key challenges and constraints for doing business in Nigeria and hence a critical area of focus for the government in order to sustain ongoing economic recovery.

    ABCON stated: “Weighing on the emergence of Nigeria from a recession in 2017, the country’s continued economic recovery will be slow, according to a new economic analysis. However, the analysis showed, labor-intensive sectors remained weak, which contributed to an increase in the rate of unemployment and underemployment throughout 2018 into Q1 2019. Level of poverty is also believed to have increased notwithstanding the exit from recession.

    “The reviews have identified the power sector as a critical area that government should focus attention to sustain the economic recovery. With the electoral victory of the incumbent government, ABCON review is recommending attention in the following sectors for full recovery from the recent recession: Radical implementation of the power sector reform program to ensure access to stable electricity supply for businesses and comprehensive diversification of the economy.”

     

     

  • Travelex, ABCON partner on $20b Diaspora remittances

    TRAVELEX Nigeria and the Association of bureaux De Change Operators of Nigeria (ABCON) have agreed to enter into strategic partnership that would enable the Bureaux de Change (BDCs) access over $20 billion Diaspora remittances into Nigeria annually.

    ABCON President, Aminu Gwadabe, disclosed  this at a one-day sensitisation programme organised for BDCs by Travelex Nigeria and Travelex UK, at the Hilton Hotel, Abuja.

    He said Travelex and ABCON are reviewing the possibility of ABCON riding on the Travelex high-tech for  BDCs to  become direct agents of International Money Transfer Operators (IMTOs).

    He said the digitization of the BDCs operations through the launch of  ABCON Live Run Automation Portal which has the backing of the  Central bank of Nigeria (CBN) shows the BDCs’ readiness and commitment  to full digitisation of their operations to provide seamless services to forex end-users and become direct agents of IMTOs.

    He said the  CBN captures only six per cent of the Diaspora remittances and the rest goes under the counter without any tracing.  He said riding on the Travelex high-tech will enable the BDCs address the reoccurring complaints of poor infrastructure which has kept the operators away from accessing the Diaspora remittances for years.

    Gwadabe, who spoke on the theme: ABCON’s Plans and Proposals for strengthening and Improving the Foreign Exchange Market viz-aviz the BDC Sub-sector in the Economy said the BDC operators are obligated by law to  render daily, monthly and annual returns to the Central Bank of Nigeria (CBN).

    He said the daily returns known as Daily Transaction Returns (DTR) gives details of the total sales made for the day by the BDC and comes in as DTR 202, DTR 217, DTR 305 and DTR 315.

    The DTR 217 return gives the information of the customers of whom the forex was sold to. Information like, the name, the international Passport number, Bank Verification Number, address, Tin number, email address among others while DTR 305 provides details of the customers as well their destination and reason for the purchase of forex.

    The total amount of forex sold to them is also mentioned with the transaction date.

    According to Gwadabe, DTR 315 tells BDCs’ opening balance, amount purchased in forex , the equivalent in naira and the rate of purchase, amount sold in forex, the equivalent in naira and the selling rate as well as the closing balance.

  • Terrorism: ABCON partners EFCC

    That Association of Bureau De Change of Nigeria, ABCON says the association’s recent collaboration with the Economic and Financial Crimes Commission (EFCC) will curb money laundering and terrorism.

    Disclosing this in an exclusive interview with The Nation, the President of ABCON, Alhaji Aminu Gwadabe stated that this has become as members have now become pray to money launders.

    “The anti-money laundering and anti-terrorism laws are fast developing and taking shape and Bureau DE change is part of financial and the BDCs are the weakest link in the financial institution.

    “It is easier to come to them and to launder the proceeds. Having that scenario, it becomes very important to upgrade the knowledge of the BDCs and to sensitize them. We are not going to limit ourselves to only public sensitization, but shall hold workshops, and training by Nigerian Financial Intelligent Unit (NFIU), an arm of the EFCC”, says Gwadabe.

    According to him, part of the sensitisation is by creating awareness for our members to be able to easily detect a suspicious transaction, explaining that it must be reported to the EFCC.

    He stressed; “There is a lot of security report that people are bringing in illicit funds to cause havoc and to disrupt the peace of the country. Sometimes, these launders or money bags find it very easy to use these BDCs, because of the nature of Bureau DE change and its size.

    “So they prefer to use the BDCs because of the nature of some of the operators who do not keep records.”

    Gwadabe noted that there is always a distinction between the licensed Bureau De Change and the Un-licensed Bureau De Change, adding the unlicensed does not want to keep any form of records, as they often believe it is not necessary.

    “This is to sensitise and train BDCs on the activities of money launders, terrorism financing. We have integrated our portal with the CBN, FIRS, and EFCC, so that financial transections’ can be monitored and reported when a transaction is suspected to be illicit.

    “We send our cash transection report of any amount that is above $5million for individuals and $10million for companies in the cash transaction. Once the report is sent to our portal, the CBN and the EFCC gets alert, which will help to carry out the necessary investigations and to stop any of the transactions found to be illegal or to be financing terrorism.”

  • ABCON backs CBN’s monetary policy, financial stability roles

    The Association of Bureaux De Change Operators of Nigeria (ABCON) has stated its support for the Central Bank of Nigeria’s (CBN’s) financial stability and monetary policy roles.

    In a statement released yesterday, ABCON President, Alhaji  Aminu Gwadabe, said the apex bank under  Governor Godwin Emefiele has achieved financial stability and promoted monetary policy initiatives that have kept the economy on the right path.

    He said CBN’s sound monetary policy decisions have also impacted positively on the banking system and economy, adding that bank customers now have confidence in the financial system. Gwadabe said  the monetary policy decisions of the CBN has helped to lower inflation rate, boosted foreign reserves and stabilised the naira.

    He said the local currency has been continuously strengthened by the CBN dollar/Yuan interventions and other policy initiatives.

    “The monetary policy decisions, Anchor Borrowers’ Programme and foreign exchange interventions are among the measures that brought inflation down from 17.2 per cent in April, 2017 to 11.37 per cent in January 2019. The CBN-led Monetary Policy Committee (MPC) has kept benchmark interest rate steady at 14 per cent for over two years to curb inflation and support the naira,” he said.

    He said CBN’s  registration of more International Money Transfer Operators (IMTOs) from 11 to 60 operators has also boosted  Diaspora remittance inflows into the economy adding that the short-term outlook of the Nigerian economy remains good.

    He also applauded the CBN’s initiatives including the Investors’ and Exporters’ (I&E) Forex window, which has helped to attract foreign capital investment into the economy as well as foreign investors who are committed to unlocking Nigeria’s economic potential.

    Gwadabe said the CBN’s restriction on 42 items that can be produced locally from accessing foreign exchange has not only improved the local production of the concerned items, but led to better utilization of available foreign exchange.

    The ABCON boss also applauded the CBN’s Anchor Borrowers programme, which has led to Nigeria’s self-sufficiency in rice production, moving the country from a net importer of rice to a major producer of rice, supplying key markets in neighboring countries.

    The apex bank, he added, also established a N300 billion Real Sector Support Facility (RSSF) to unlock potentials in the economy and promote real sector growth. The facility is supporting large enterprises for startups and expansion financing needs of N500 million up to a maximum of N10 billion in key sectors of the economy, especially manufacturing, agriculture and services.

    He said the Anchor Borrowers’ Programme, together with other initiatives like the Commercial Agriculture Credit Scheme and other packages for Small and Medium Enterprises (SMEs), are holding on significantly in the drive to boost the economy and shield it from perceived volatilities in the international economy that is dragging back most emerging markets.