BDCs seek CBN’s intervention in rising transaction charges by banks

• NIBSS trains operators on use of BVN validation

The Association of Bureaux De Change Operators of Nigeria (ABCON), an umbrella body of Bureaux de Change (BDCs) operators is seeking the intervention of the Central Bank of Nigeria (CBN) over what it described as “burden” on operators in the form of charges for transactions by banks.

The complaints of excess charges against banks has a general issue, but now said they are charged N1,000 in every million naira transaction, costing each operator as much as N67,000 for the N67 million monthly transactions.

ABCON President, Alhaji Aminu Gwadabe, said these charges are too high, and I urge the CBN to help reduce the charges, which are becoming huge burden on BDC operators,” he said.

Meanwhile, the Nigeria Interbank Settlement System (NIBSS) in collaboration with ABCON has completed a comprehensive module on usage and deployment of Bank Verification Number (BVN) Validation Portal for BDC operators.

The move became exigent given the rapid digitisation of every transaction across the globe, which now placed the operators under necessity to stay ahead of the pack, deploying time-tested technology to deliver seamless services to their numerous customers.

Gwadabe, said the BVN validation sensitization programme was part of the confidence-building agenda of the association to ensure that members abide by the rules guiding the Nigerian foreign exchange (forex) market.

According to him, the programme was held in the six geopolitical zones, having in attendance more than 3,500 registered operators across the country. “The ABCON/NIBSS Sensitisation Programme on BVN Validation Portal has been on in the last two months. We are happy that all our six geopolitical zones have been covered.

“It is our own input to the CBN’s policy implementation and an opportunity to take confidence-building in BDCs’ operations to the next level. The CBN directed BDCs to validate the authenticity of BVN that clients wanting to buy forex submit to them.

“Already, the BVN is becoming very important to government, hence, we are thinking ahead and equipping our members with the right skills and technology. We are committed to ensuring that our members do not fall short of regulatory requirements,” he said. 

He said the operators have supported the regulator to achieve exchange rate stability as seen in the naira exchanging at N361/$1 at the weekend, from over N520/$1 about eight months.

ABCON chief explained that to ensure a hitch-free implementation of the directive, the CBN has continuously provided list of all licensed BDCs to the NIBSS to enable the company make available the necessary hardware token that would be used in accessing the NIBSS portal.

He commended CBN’s drive to stabilise the forex market, stem the rampant cases of forex leakages and illicit money transfer from the country and said the body aligns with the vision of providing a stable framework for the economic development of Nigeria, through effective, efficient, and transparent implementation of monetary and exchange rate policy, and management of the financial sector.