The Association of Bureaux De Change Operators of Nigeria says it is seeking the merger of several Bureaux De Change operators and not recapitalisation of the industry.
ABCON said in a statement on Thursday by its President, Alhaji Aminu Gwadabe, that the recommendation was to effectively help its corporate governance and rules of engagements with the apex bank.
The merger option was adopted for class ‘A’ BDCs in 2007/2008, which entitled them to $1m weekly allocation with N500m capital base.
The group called for similar business model through mergers and consolidation, rather than outright review of capital base of each operator.
Each of the CBN-licensed BDCs was capitalised to the tune of N35m and should be allowed to willingly consolidate among themselves, the association said.
Gwadabe stated that the group never asked for upward review of N35m mandatory regulatory approved capital base for each BDC, but a merger of at least, 10 BDCs to form new capital of N350m.
The move, he said, would enhance the scope of operation and diversification of sources through various window and reduce regulatory pressures.
He said merger of multiple BDCs into a stronger entity would prepare them for higher role in the financial system, including handling of diaspora remittances, or other offshore funds attracted to the economy to deepen forex access at the retail end of the market.
Gwadabe said the 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 an easily manageable operators for maximum impact in the foreign exchange market.
He said, “ABCON rejects reports calling for BDCs recapitalisation by a section of the media. The media quoted us out of context and we are working to put a proper narratives.”
According to him, the BDCs were seeking multiple mergers within the industry to present a reduced number of operators for more effective regulation.