By Babajide Komolafe
ASSOCIATION of Bureaux De Change Operators of Nigeria (ABCON) has lamented the unfair competition against BDCs in the weekly dollar sale of the Central Bank of Nigeria (CBN).
ABCON President, Alhaji Aminu Gwadabe, who made this known to journalists stated: “BDC business has been badly affected by uncompetitive rate as the CBN sells dollars to BDCs at higher rate compared to what the regulator sells to commercial banks, yet both target the same market segment and customers.”
The BDCs, he said, buy dollar from the CBN at N360 per cent and sell to end users at N362 per dollar while it sells to commercial banks at N358 per dollar and the banks sell to end users at N360 per dollar.
Gwadabe described the buying rate for the BDCs as uncompetitive and a big disincentive for many forex users to patronize the operators.
According to the ABCON boss, the banks enjoy large customer base with the customers able to carry out their transactions by having their accounts debited to cover the cost of purchase.
He said such convenience plus a lower rate put the banks at advantage to attract more customers than BDCs.
He lamented that BDCs are not only buying at exorbitant rate, but also sell at a rate higher than that of the banks hence, creating low patronage for the operators.
Gwadabe advised the CBN to take urgent steps to review the rate at which the dollar is sold to the BDCs as such would boost ongoing recovery of the naira against dollar.