BDC Directors Reiterate Commitment To Exchange Rate Stability

Bureaux De Change (BDC) directors have reiterated commitment to
ensuring stable exchange rate and sound corporate governance
practices.

This was part of resolutions made at the end of a meeting of BDC
Directors organised by the Association of Bureaux De Change
Operators of Nigeria (ABCON) in Lagos, recently.

The BDC directors also expressed support for the proposed ABCON
Task Force Committee for the purposes of monitoring compliance by
operators.

While observing that the guidelines for BDC operations require
that all licensed BDCs operate inside their registered offices, the
directors charged ABCON to punish any operator involved in street
trading of forex or any activity that contravenes the guidelines of
the Central Bank of Nigeria (CBN) for the sub-sector.

Furthermore, the directors, in a statement, committed to
increased supervision of their operations of their BDCs while
ensuring adequate remuneration for staff and prompt rendition of
returns to the regulatory authorities.

They however stressed the need for the Central Bank of Nigeria
(CBN) to increase the sales margin of BDCs stressing that the N2
margin presently allowed by the central bank was inadequate in view
of the operating cost of BDCs as well as the rising inflationary
trend in the country.

They also highlighted the need for the CBN to expand the
operating scope of BDCs to allow for more business revenue to cover
their operating cost.

The resolutions followed presentations by ABCON’s executive
council members on the role of directors in ensuring that their
organisations operate within the scope of the CBN guidelines for
the subsector.

ABCON President, Dr. Aminu Gwadabe, charged the BDC directors to
protect the huge money invested in their BDCs by ensuring their
staff operate within the approved guidelines of the CBN.

He said this has become imperative to protect the BDC business,
especially the weekly dollar sale by the CBN.

Noting that total investment in each BDC was about N35 million,
he called for increased supervision by directors, to detect and
forestall any activity that could lead to the loss of such
investment.

Listing the expected roles of BDC directors, Chairman South West
Zone, ABCON, Mr. Taiwo Ebenezer, said directors should be involved
in the day-to-day activities of their firms and relate regularly
with their staff.

Among other things, he added that BDC directors must know the
sources of funds paid into their corporate accounts, while also
ensuring weekly operational reports from their staff.

On his part, ABCON National Treasurer, Alhaji Gbadamosi
Mohammed, said it was the duty of directors to educate their
members on the ethics of the business as indicated in the CBN
guidelines.

He added that the ongoing nationwide ABCON training was informed
by the need to ensure that all BDC staff are adequately educated,
and the directors should ensure application of lessons from the
training by their staff in the day-to-day running of their
BDCs.
Also speaking, ABCON Vice President, Azubuike Igbokwe listed
unauthorised transactions for BDcs to include, funds transfer,
donations to political parties, funding of importation and funding
of terrorism activities.

Noting that the penalty for these unauthorised transactions
include N5 million fine, exclusion from forex bidding or revocation
of operating licence, he charged the directors to always validate
the BVN of their customers so as to ensure their identity and
activities as a way of ensuring their BDCs are not unconsciously or
indirectly used for any of the unauthorised transactions.

Bureaux De Change (BDC) directors have reiterated commitment to
ensuring stable exchange rate and sound corporate governance
practices.

This was part of resolutions made at the end of a meeting of BDC
Directors organised by the Association of Bureaux De Change
Operators of Nigeria (ABCON) in Lagos, recently.

The BDC directors also expressed support for the proposed ABCON
Task Force Committee for the purposes of monitoring compliance by
operators.

While observing that the guidelines for BDC operations require
that all licensed BDCs operate inside their registered offices, the
directors charged ABCON to punish any operator involved in street
trading of forex or any activity that contravenes the guidelines of
the Central Bank of Nigeria (CBN) for the sub-sector.

Furthermore, the directors, in a statement, committed to
increased supervision of their operations of their BDCs while
ensuring adequate remuneration for staff and prompt rendition of
returns to the regulatory authorities.

They however stressed the need for the Central Bank of Nigeria
(CBN) to increase the sales margin of BDCs stressing that the N2
margin presently allowed by the central bank was inadequate in view
of the operating cost of BDCs as well as the rising inflationary
trend in the country.

They also highlighted the need for the CBN to expand the
operating scope of BDCs to allow for more business revenue to cover
their operating cost.

The resolutions followed presentations by ABCON’s executive
council members on the role of directors in ensuring that their
organisations operate within the scope of the CBN guidelines for
the subsector.

ABCON President, Dr. Aminu Gwadabe, charged the BDC directors to
protect the huge money invested in their BDCs by ensuring their
staff operate within the approved guidelines of the CBN.

He said this has become imperative to protect the BDC business,
especially the weekly dollar sale by the CBN.

Noting that total investment in each BDC was about N35 million,
he called for increased supervision by directors, to detect and
forestall any activity that could lead to the loss of such
investment.

Listing the expected roles of BDC directors, Chairman South West
Zone, ABCON, Mr. Taiwo Ebenezer, said directors should be involved
in the day-to-day activities of their firms and relate regularly
with their staff.

Among other things, he added that BDC directors must know the
sources of funds paid into their corporate accounts, while also
ensuring weekly operational reports from their staff.

On his part, ABCON National Treasurer, Alhaji Gbadamosi
Mohammed, said it was the duty of directors to educate their
members on the ethics of the business as indicated in the CBN
guidelines.

He added that the ongoing nationwide ABCON training was informed
by the need to ensure that all BDC staff are adequately educated,
and the directors should ensure application of lessons from the
training by their staff in the day-to-day running of their
BDCs.
Also speaking, ABCON Vice President, Azubuike Igbokwe listed
unauthorised transactions for BDcs to include, funds transfer,
donations to political parties, funding of importation and funding
of terrorism activities.

Noting that the penalty for these unauthorised transactions
include N5 million fine, exclusion from forex bidding or revocation
of operating licence, he charged the directors to always validate
the BVN of their customers so as to ensure their identity and
activities as a way of ensuring their BDCs are not unconsciously or
indirectly used for any of the unauthorised transactions.