BDC Operators Meet Today On Forex Rate Convergence

BDC Operators Meet Today On Forex Rate Convergence

By Tunde Osho

Over 3,500 Central Bank of Nigeria-licensed Bureaux De Change, BDC operators are set to meet Wednesday, January 10, 2018.

The BDC operators will hold the meeting at the Gloval Hall, Lagos to discuss key challenges facing the sector especially on rate convergence for banks and BDCs s well as rising bank charges on BDCs’ transactions.

According to president of ABCON, Mr. Aminu Gwadabe, negative margins being experienced by BDCs, review of annual license renewal in view of the number of the BDCs, and approval of additional foreign exchange (forex) disbursement centres in Port Harcourt, Maiduguri, Benin, Ibadan, among others, will also be discussed at the meeting.

He stated that issues bordering on Company Income Tax (CIT) and Value Added Tax (VAT) payment by BDCs, ABCON members’ statutory payments which include CBN Licence Renewal Fees and Annual Subscription Fees as well as late disbursements of forex at various centres would be looked into.

Gwadabe noted that the challenges faced by BDCs are enormous, as many forex users now prefer to buy their Business Travel Allowances (BTA), Personal Travel Allowances (PTAs), medical bills and school fees payment abroad through the banks instead of BDCs following the convergence of naira/dollar rates at parallel market and BDCs.

The ABCON boss stated that the meeting would equally enable members review and acquaint themselves with all the level automations of BDCs operations, ABCON, presentation of ABCON Logo for Members’ Corporate Identity and the ABCON Estate among other burning issues within the industry.