Abuja FX traders group sparks controversy ahead of launch

The Wuse Zone 4 FX Traders Association is set to inaugurate a parallel FX market forum and its leadership in Abuja. The launch of the association is slated for January 15, 2025 at the Shehu Musa Yar’Adua Centre in the Nigerian capital.

Key events for the day include the inauguration of newly elected executive council members to run the group which is expected to escalate forex trading in informal markets.

The organisers listed key players in government, public sector and politicians as special guests for the launch. But some stakeholders say the impending association will impact negatively on exchange rate stability.

When contacted for his comments, the president of the Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, said although individuals are free to form associations and groups for their personal and business interests, but such groups should first get regulatory approvals for their operations.

“I do not think that it is right for groups in a CBN regulated sector to operate without the necessary regulatory and security licences and consents given the sensitive nature of the forex market and vulnerability to money laundering and terrorism financing usually associated with unlicensed operators,” he said.

Gwadabe called on members of ABCON to remain committed, loyal and supportive to ABCON’s operations adding that its leadership will continue to engage relevant authorities in ensuring business sustainability.

Sources within the Central Bank of Nigeria said the apex bank cannot be party to illegal FX trading group.

Other industry stakeholders expressed concerns over the planned launch of the Wuse Zone 4 FX Traders Association.

The stakeholders said the formation of a parallel FX group comprising of FX speculators will work against ongoing naira recovery and exchange rate stability policies being implemented by the CBN.

When contacted, Abdullahi Abubakar, the outgoing Chairman, Wuse Zone 4 FX Traders Association, said the group will protect the interest of parallel market traders.

He said the group has no backing of the CBN, adding that ABCON is the recognised body for FX trading in Nigeria.

ABCON was formed in 1989 by over 50 Bureaux de Change (BDC) operators in order to create an environment of sanctity in the business of foreign exchange.

The primary role of BDCs globally is to ensure forex availability to the critical retail sector of the forex market in terms of supply so as to bridge the gap between the official and the parallel market exchange rate.

Today, ABCON has over 1,500 registered members who are committed to the Central Bank of Nigeria’s vision of promoting exchange rate stability and getting foreign exchange to the retail end of the market. However, it was not until 1997 that ABCON was registered with the Corporate Affairs Commission.

With this numerical strength and spread, the association is fulfilling its objective of working closely with CBN and key industry stakeholders like Travelex Nigeria and Travelex UK to meet the public’s yearning for a legitimate business in foreign exchange.

Despite several challenges facing the Nigerian forex market, the BDCs under ABCON leadership have continued to offer retail, across the counter, foreign exchange transactions and played critical roles in the economy, contributing to the economic development of the country and creation of over 15,000 jobs among others.