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Tag: ABCON

  • Naira overvalued by 20% – IMF

    Naira overvalued by 20% – IMF

    The International Monetary Fund (IMF) on Wednesday said the naira is overvalued by 10 to 20 per cent.

    The IMF mission chief for Nigeria, Gene Leon, said the overvaluation of the naira is “somewhere to the tune of 10 to 20 per cent” and the country’s 2017 projections for non-oil revenues are more optimistic than the Fund’s.

    He also urged Nigerian authorities to increase tax levels to diversify its income.

    Leon said Nigerian authorities were concerned about the IMF’s earlier staff report’s view.

    The Fund warned that Nigeria economy needs urgent reform and the dangers of a volatile foreign exchange market.

    It outlined several failings in the government’s handling of the economy and could affect talks over at least $1.4 billion in international loans.

    But President, Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, said the IMF officials should explain the yardstick for their advice.

    He said what the IMF is technically saying was that the official rate of N306 to dollar should move to N360 to dollar.

    “The IMF and other agencies look at the bureau de change rate. That is why we are saying there should be special window for both entry and exit to encourage more capital inflows to supplement the foreign reserves and diversify dollar sources,” he said.

     

  • ABCON: BDCs not parallel market operators

    ABCON: BDCs not parallel market operators

    The Association of Bureaux De Change Operators of Nigeria (ABCON) yesterday defended Bureaux De Change (BDCs) licensed by the Central Bank of Nigeria (CBN) saying they operate within set rules and are not part of parallel market operators.

    Its President, Aminu Gwadabe, in a statement, distanced ABCON members from the activities of BDC parallel market operators, which he said have constituted major setback to naira’s stability. He insisted that the CBN-licensed BDCs are not parallel market operators as misconstrued by a large section of the public and even top government officials.

    Gwadabe said CBN-licensed BDCs, which are 3,147 operators at present, are key partners of the apex bank in ensuring the stability and competiveness of the naira against world currencies, including the dollar.

    He said licensed operators have been given up to December 31 by the CBN to renew their annual licensing fee of N250,000. He added that they are registered with the Corporate Affairs Commission (CAC)  and with each operator meeting the mandatory N35 million capital base stipulated by the apex bank.

    Gwadabe said Finance Minster, Mrs. Kemi Adeosun severally accused the BDC parallel market operators of contributing to the continuous depreciation of the naira, but insisted the CBN-lisensed BDCs do not fall within the category being described by the minister because they operate based on set guidelines.

    The ABCON chief said the licensed BDCs, not only have their operational offices, they file reports with the Federal Inland Revenue Services (FIRS) and belong to ABCON, which is recognised by the apex bank as the umbrella body for licensed BDCs.

    Gwadabe said his members are committed to naira’s stability at both official and parallel markets, and have consistently partnered with the CBN to achieve this objective.

    “The CBN-licensed BDCs have always played collaborative and positive roles for the regulator in achieving exchange rate stability.

    Besides, CBN’s admission of licensed BDCs into the International Money Transfer Operators- IMTOs-Window foiled analysts forecast for the naira to cross N500 to dollar rate by last December. The licensed BDCs have weekly rate quoted on the Uniform Weekly Exchange Rate for Licensed Bureaux De Change portal.

    He said the rate for this week was N399 to dollar, adding that ABCON has continued to ensure that licensed operators abide by the rate while defaulting members will be sanctioned.

    Gwadabe however, described the BDC parallel market operators or unlicensed BDCs as underground operators, without offices, and which do not render returns to the CBN.

    He said these operators, seen mostly in major streets because they do not have offices, remain the major problem facing the naira.

    “The transactions done by unofficial BDC operators are highly exploitative and lucrative given that they are not bound by any regulation. These set of operators are invisible, and are the ones causing the rising gap between official and parallel market rates,” he said.

    According to Gwadabe, the transactions done by these underground operators are bigger in volume than those of the CBN-licensed operators, and therefore have constituted major roadblock to naira’s stability. He said unlicensed BDCs do not render returns to the CBN, are not registered with the CAC and do not file reports at the FIRS.

  • ABCON seeks exchange rates harmonisation

    ABCON seeks exchange rates harmonisation

    •Unveils unified rate for BDCs

    The Association of  Bureaux De Change Opera-tors of Nigeria (ABCON) yesterday urged the Central Bank of Nigeria (CBN) and Federal Government to harmonise the multiple exchange rates in the country and adopt a unified rate for transactions.

    Its President, Aminu Gwadabe who spoke during the group’s maiden meeting with reporters in Lagos, called for the adoption of a single foreign exchange (forex) market rate system.

    He said licensed BDCs will post an exchange rate each Monday on its website from January 16 to “highlight positive rate development in the market” and counter domains such as abokifx.com, which publishes unofficial prices daily.

    Trading in the black market boomed since 2014 after the central bank strengthened capital controls as crude oil prices dropped. Dollar trades for about N490, compared with the official rate of about N315. The BDCs will initially quote a rate of N399, Gwadabe said.

    The ABCON chief said there was need to disregard the parallel market rates as they were not recognised by law adding that this year looks promising despite the challenges faced in the foreign exchange market.

    According to him, ABCON believes that despite the challenges facing the economy, the CBN and BDCs will continue to work together and find sustainable solutions that can help the country wriggle out of the ongoing forex crisis and achieve full economic recovery.

    “We have continuously assured the CBN and taken appropriate measures to ensure that purchased funds are disbursed to end users and for eligible transactions only. We also render weekly returns on purchases from the banks to Trade and Exchange Department of the apex bank.  We also ensure strict compliance to the provisions of the anti-money laundering laws observance of appropriate Know-Your-Customer principles in the handling of forex transactions,” he said.

    The ABCON chief reiterated the need for the public to deal with only CBN-licensed BDCs and for the public to report errant operator for necessary sanction.

    He called on the media to support ABCON’s determination to highlight positive rates development in the market through the BDCs Weekly Rate for media coverage which was launched at the event.

    “We also seek your support and partnership to assist the CBN and government to eliminate or reduce to the barest minimum activities of parallel market operators. We also want to through our partnership with you, to give visibility to registered BDCs in the market and create more awareness on the role of BDCs in selling forex to the retail end of the market,” he said.

    Gwadabe said rate divergence has led to many Nigerians in Diaspora not sending their dollar-earnings through official means. He said though there were reports of Nigerians in Diaspora sending $35 billion home in 2016, but less than five per cent of the funds were captured by the CBN.

    He said that CBN implements between N500, 000 to N2 million fine for BDCs that violate regulatory policies, and they may also face license suspension.

    He said the single forex rate has succeeded in Egypt, adding that Nigeria should block all forex leakages to make it work in the country. “Forex market is an information-driven market. The type of information you release helps to swing rates and would also help the CBN’s plan to achieve single exchange rate,” he said.

    He said the ABCON is working very hard to build public confidence in registered BDCs because the forex market is driven by per caption. He said the ideal rate for the naira is $400 to dollar adding that speculation is hurting the local currency against the greenback.

    He said there is currency low confidence level on the value of the naira, and that the ABCON is also uring the CBN to allow stop banks from selling Personal Travel Allowances and Business Travel Allowances to travelers.

  • ABCON suspends Amazon BDC over $156,000 cash

    ABCON suspends Amazon BDC over $156,000 cash

    The Association of Bureau De Change Operators of Nigeria (ABCON) yesterday suspended Amazon Bureau De Change (BDC). This followed the arrest of Amazon BDC Manager, Nwokenta Emmanuel, and five other persons, by the Nigeria Drug Law Enforcement Agency (NDLEA) for swallowing $156,000 intended for export to Brazil.

    The Executive Council of ABCON also suspended directors and workers of the company pending the outcome of the investigations by the its Disciplinary and Investigative Committee, the NDLEA, Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN).

    ABCON President, Aminu Gwadabe who announced the suspension said the group is shocked and highly embarrassed by the development and the involvement of a BDC operator in the act.

    ”While this is not to pre-empt the outcome of these investigations, the suspension is to serve as strong warning to all ABCON members that any case of illegality and unethical conduct will be severely dealt with by the Association. We call on all BDC operators not to allow anyone to use their services or license for money laundering or any act of illegality and criminality,” Gwadabe said.

    He said ABCON has a zero tolerance for non-compliance with regulatory requirement and for unethical conduct amongst its members.

    “It for this purpose that the association created the office of Compliance Officer in its National Secretariat and in all its zonal offices and also provided official vehicles for the compliance officers to regularly pay inspection visits to BDCs under their jurisdictions”.

  • BDC operators move to resolve crises in ABCON

    BDC operators move to resolve crises in ABCON

    Bureaux De Change  (BDC) operators has started moves to resolve the lingering leadership crisis in the Association of Bureaux De Change Operators of Nigeria (ABCON)

    Rising from a stakeholders meeting of BDCs in the Southwest zone, the operators adopted four resolutions aimed at restoring peace to the association.

    Since last year, some members of the association’s Board of Trustees and the Executive Council have been locked in legal battles which have grounded its operations.

    But last Tuesday, some concerned BDC operators, under the aegis of BDC Stakeholders Committee in the Southwest, convened a stakeholders’meeting of BDCs in the Southwest zone in Lagos.

    Addressing the meeting, Chief executive Officer (CEO), A&S BDC, Mr. Abdul Rasheed Amao, and  a member of the Stakeholders’ Committee,  said the leadership crisis had denied BDC operators of a voice to speak at a time such voice is needed most.

    He said the meeting was convened to allow BDC operators brainstorm on the way out of the leadership crisis.

    BDC operators at the meeting considered four resolutions for adoption. Thereafter, Mrs Mojisola Adesanya of Anchoria BDC, moved the motion, calling the warring members of the Board of Trustees and the Executive Council to withdraw the court case at the Supreme Court and settle amicably.

    The motion was seconded by Mr. Okai Agare of Green House BDC. The second resolution was moved by Prince A. Ajayi  of Double K BD and seconded by  Ndubisi of All Saints BDC.

    The resolution called for an Emergency General meeting of all stake holders nationwide.

    This was followed by another resolution by Benjamin Oje, seconded by Ken Ajurichi of mandating the Stakeholders Committee to develop the agenda of the proposed EGM. The fourth resolution mandated the Stakeholders Committee to  meet with Mr. Bamidele  Adiesa, pioneer chairman Board of incorporatedTrustees ,other members of pioneer Board of Trustee and four members of stakeholders committe to resolve the lingering issue.  The motion for the resolution was moved by  Mr. Osita and Engineer Nze.

  • ABCON seeks 40-week timeline for BDCs

    ABCON seeks 40-week timeline for BDCs

    THE Association of Bureaux De Change Operators of Nigeria (ABCON) has proposed a 40-week time table for bureaux de change (BDC) operators to meet the N35 million new minimum capital requirements set by the Central Bank of Nigeria (CBN).

    On June 23, the Central Bank of Nigeria (CBN), among others, raised the minimum capital requirement of BDCs to N35 million from N10 million. It also raised the mandatory caution deposit to N35 million from $10,000.

    On July 7, the apex bank extended the deadline from July 15 to July 31, in response to appeals and intervention of ABCON and both chambers of the National Assembly.

    ABCON President, Alhaji Aminu Gwadabe said the proposal had been sent to the CBN Governor for approval.

    He said though the apex bank has extended the deadline by three weeks to July 31, the time was too short to enable BDCs comply with the statutory and legal requirements of the new policy. The timetable, he said, contains actions needed to be taken to enhance the successful implementation of the CBN policy for the subsector.

    According to Gwadabe, “The timetable starts with sensitisation seminars to educate members on various options to consider in meeting the minimum capital requirement. We plan to hold these seminars in each geo-political zone of the federation. Moreover, we would assist members scout for consultants to guide them on issues of valuation of existing companies in order to accommodate new members and or achieve harmonious merger. This is in line with what the CBN did for banks during the recapitalisation exercise of 2004”.

    He said in addition to the 40- week timetable,  the Association has also appealed to the CBN to take a critical look at the minimum capital requirement of N35 million and the requirement of N35 million as caution deposit, because both requirement implies that the apex bank has raised the minimum capital base of BDCs to N70 million, since the N35 million caution deposit would not be immediately refunded once it is deposited.

    “Consequently, we have appealed to the CBN Governor to allow the minimum capital  base to be at N35 million and the caution deposit at N5 million so as to source the caution deposit  from the capital base of the company and the balance of N30 million be used as working capital of the BDCs.

    “We have also appealed to the CBN to consider paying treasury bills interest rates on caution deposit to the BDCs, and because of volatility of the rate, an annual average rate could be used when crediting the interest due on the caution deposits.

  • Bureaux de Change operators deny sponsoring terrorism

    Bureaux de Change operators deny sponsoring terrorism

    •Seek National Assembly’s intervention

    BureauX de Change (BDC) operators have denied sponsoring terrorism.

    Acting President of the Association of Bureaux De Change of Nigeria (ABCON) Aminu Gwadabe said this when he led members of the association to meet the Committees on Finance of both chambers of the National Assembly in Abuja.

    Gwadabde urged the National Assembly to intervene in the N35million capital base for BDCs imposed by the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele.

    He said: “Money laundering and terrorism are aspects of specialised relevant agencies.

    “The National Financial Intelligence Unit (NFIU), the police and Customs will checkmate the activities of money launderers and terrorism financiers and bring the culprits to book.

    “It should not be the CBN’s primary concern. Our members too have been trained by the relevant agencies and are helping them understand the consequences and implications of money laundering and terrorism financing.

    “It was stated in the policy that the share capital of N10 million will now be increased to N35 million representing a 250 per cent increase. The one that baffles us most is the mandatory caution deposit from $20,000 (N3.5 million).

    “There was a newspaper report that BDC operators are sponsoring terrorism.

    “The publication said the CBN claimed that some BDC members are involved in terrorism financing.

    “But the CBN denied it; we told them it was carried in the newspapers. This kind of statement if allowed will not only affect the BDC operators, even the regulators are also going to suffer the bad image.

    “That is why we should be careful in making this kind of policy statements.”

    Gwadabe said the association had met Emefiele on the issue.

    He told the Senate Committee, led by Senator Ahmed Makarfi, that the policy would lead to the closure of many BDCs and worsen the unemployment situation in the country.

    “”We appeal for the total reversal of the policy because it will force many of our members out of the market.

    “The 100 per cent increase in the mandatory cautionary deposit will boost the black market segment of the economy and the return of exclusive Group ‘A’ BDCs.”

    Makarfi urged the operators to go about their agitation peacefully.

  • ABCON seeks compliance with money laundering law

    The Association of Bureaux De Change Operators of Nigeria (ABCON) has said bureau de change (BDC) operators should comply with the anti-money laundering policy being implemented by the Central Bank of Nigeria (CBN).

    Recently, the CBN announced some measures to check money laundering tendencies observed in the foreign exchange market. These include the ban on importation of foreign currencies, and suspension of 20 BDCs for not rendering returns and non-compliance with anti-money laundering regulations.

    ABCON Acting President, Aminu Gwadabe, said the measures of the CBN were in line with the group’s position on compliance with regulatory requirements.

    “When it comes to the issue of non-compliance with regulatory requirements, especially rendering returns as well as compliance with approved limits for foreign exchange transactions, the association has a zero-tolerance position.

    “We have made it known to our members that we would not hesitate to impose sanctions or report to the CBN, any member found guilty of not complying with these requirements. So we are fully in support of the actions of the CBN,” he said.

    He said such action is necessary to ensure sanity in the foreign exchange market, and most importantly the stability of the naira, which is critical to our economy.