The Association of Bureaux De Change Operators of Nigeria (ABCON) is seeking the merger and consolidation of bureau de change (BDC) operators while kicking against recapitalisation of the industry.

It said consolidation would improve corporate governance and rules of engagement with the apex bank.The merger option was adopted for class ‘A’ BDCs in 2007/2008, which entitled them to $1 million weekly allocation with a N500 million capital base, the association said.

The group, in a statement, called for a similar business model through mergers and consolidation rather than an outright review of the capital base of each operator.

It said the Central Bank of Nigeria (CBN) would be in a better position to regulate the BDCs from the consolidation exercise. Each of the CBN-licensed BDCs is capitalised to the tune of N35 million and should be allowed to willingly consolidate among themselves, ABCON President, Dr Aminu Gwadabe, said in a statement.

Gwadabe said the group never asked for an upward review of N35 million approved capital base for each BDC, but for a merger of at least 10 BDCs to form new capital of N350 million.

The move, he said, would enhance the scope of operation and diversification through various windows. He said a merger of multiple BDCs into a stronger entity would prepare them for a higher role in the financial system, including handling diaspora remittances or other offshore funds to deepen forex access.

Gwadabe said a merger of multiple commercial banks in 2004 consolidation exercise by the apex bank is an example the apex bank could adopt for the BDCs to streamline their numbers and present manageable operators for maximum impact.