Nigeria’s illegal cash evacuated to UAE, China, Lebanon: BDCs

The Association of Bureaux De Change Operators of Nigeria (ABCON) has called on the Nigerian government to revamp the country’s porous borders, claiming they are routes to evacuate illegal cash to China, the United Arab Emirates, and Lebanon.
ABCON also urged the Central Bank of Nigeria to make bureaux de change operators payout agents for the diaspora remittances.
Aminu Gwadabe, ABCON President, advised at the association’s annual general meeting held virtually on Wednesday in Lagos.
He called for increased border checks and controls to stop unlawful cash evacuations to the UAE, China, and Lebanon.
“So, given the state of our porous borders, which usually lead to unlawful cash evacuations to the UAE, China, and Lebanon, there is an urgent need for increased border checks and controls,” Mr Gwadabe pointed out.
He added that if investors and diaspora remittance senders were allowed to interact freely with the BDCs, the exchange market liquidity would be stronger.
“ABCON suggests to the CBN to make the BDCs Diaspora remittances pay agents.
“The CBN introduced the Investors and Exporters (I&E) Window, which allows foreign investors to freely bring their funds into the economy at a rate of their choice,” he argued.
Speaking further at the event, he stated, “A similar plan was implemented by the CBN in 2016/2017. The impact was massive in boosting foreign capital flows to the economy and deepening exchange market liquidity.
“Therefore, ABCON suggests that the CBN allows investors and Diaspora remittance senders to freely interact with the BDCs’ bid and offer rates and make the BDCs payout agents for remittances.”
Mr Gwadabe further revealed, “We are happy to announce that the licensed BDCs sub-sector is commanding N1 trillion annual turnover in the economy.”
According to him, the foreign currencies dealt in by a BDC are derived from private and other sources, which may include the CBN window.
“The CBN window is for the purposes of funding Business Travel Allowance, Personal Travel Allowance, school fees payment abroad, medicals, mortgage, and subscriptions.
“The BDCs also access dollars from other autonomous sources such as the diaspora remittances, walk-in customers, and bank sources,” he added.
Mr Gwadabe explained that the BDCs had ensured that the market gained the needed liquidity that has ensured the exchange rate remained stable and illegal operators put out of business.
(NAN)
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