Economy

No BDC Operator Gets Forex at N305/$—ABCON

Published

6 years ago

31/12/2019

By Adedapo Adesanya

The Association of Bureau de Change Operators of Nigeria (ABCON) has said that none of its members gets foreign exchange (forex) at rates lower than the standard market price put in place by the Central Bank of Nigeria (CBN).

This was disclosed by president of ABCON, Mr Aminu Gwadabe, in a statement issued by the group to comment on a petition written against the CBN by a lawyer. The legal practitioner, Barrister J.U. Agoyu, had claimed that the apex bank was running a dual exchange rate allocation regime.

But defending Governor of the CBN, Mr Godwin Emefiele, the ABCON boss said the policy on foreign exchange allocation to Bureau de Change (BDC) had helped stabilized the Naira against the dollar.

Mr Gwadabe said Mr Agoyu’s petition to the Senate Committee on Finance was uncalled for, saying the accusation against the CBN governor and its management team of compromise in the allocation of foreign exchange was false.

The petitioner had pleaded with the Senate to compel Mr Emefiele to review the policy of dual exchange rate without delay to keep BDC operators in business.

During one of the sessions at the National Assembly, a member of the committee, Senator Ayo Akinyelure, had said, “There is a case against the CBN governor and his management team written by Bar. J.U Ayogu. A petition before the Senate laid on December 12, 2019 where Bar. J. U Ayogu, Esq, on behalf of the Bureaux De Change Operators of Nigeria wrote against the CBN over its dual exchange rate forex policy that enriches a few Nigerians and its top management staff to the detriment of many lawful Nigerians and frustrating the policy of the present administration of eradicating poverty and unemployment from all the nooks and crannies of Nigeria.”

But Mr Gwadabe, disclaiming the N305/$ rate to BDCs as claimed by the petitioner, clarified that it was not the transactional rate used in the market but used in settling government obligations.

“This is the hand work of unknown faces not ABCON. It is confrontational and lack credible evidence. The N305/$ is not a transactional rate but for settling government obligations.

“ABCON submission to the National Assembly is on Value Added Tax (VAT) exemption and review of licence fee renewal downward submitted to the CBN.

“The petitioner was never at any time appointed to speak on behalf of the BDCs,” Mr Gwadabe said.

He said that no BDC or service provider gets forex at N305 to the dollar and that the petitioner’s claim was completely false, stressing that the CBN forex policy has brought stability to the BDC sector and helped operators to embrace automation which is the standard practice globally.

Mr Gwadabe further explained that beyond the rate differentials, Nigeria needs multiple streams of forex earnings and the enlisting of more channels to attract Diaspora remittances and other foreign capital that will not only deepen the market, keep the Naira stable and boost operations of BDCs.

He said that Diaspora remittances to Nigeria, which stood at $25 billion annually in 2018, remains a reliable source of forex to the domestic economy and should form part of the revenue stream for the over 4,500 CBN-licenced BDCs.

The ABCON boss noted that there was need to make BDCs one of the channels for receiving Diaspora remittances into the economy to create more income for operators, stressing that BDCs remain at the centre of economic development and have the capacity to attract needed capital for the growth of the Nigerian economy.

“Other great areas to focus in diversifying our foreign exchange earnings include promoting Diaspora remittances for economic buffer and foreign reserves accretion as seen in India and United Arab Emirates (UAE) where migration remittances have lifted their economies.

“The ABCON Executive Council under my leadership will continue to promote improved capacity and technological advancement among BDC operators. We are also committed to better skills acquisition for BDC operators to elevate them to viable monetary regulatory partners and lead players in exchange rate stability,” Mr Gwadabe added.

He further commended the CBN management for its progressive policies and for achieving stable exchange rate that aligned with its price stability mandate, noting that with improved availability of foreign exchange, the exchange rate at the Investors’ and Exporters’ Forex window has remained stable for over two years at an average N360/$, and the parallel market exchange rate has appreciated from N530/$ in February 2017 to around N360/$.

Mr Gwadabe said the CBN has been able to create a people-focused central bank promoting macro-economic objectives such as low inflation and a stable exchange rate, along with a focus on promoting inclusive growth and reducing unemployment in the country.

Meanwhile, the leader of BDC operators in Nigeria said ABCON has appointed Mike Akinfolarin & Associates as its consultant/tax Attorneys on VAT, which is a bigger problem confronting the operators as a large part of their income go into paying taxes, adding that in other economies, foreign exchange rate control by government is VAT exempt.

“The law firm of Mike Akinfolarin &Associates (tax attorneys) made a representation on behalf of ABCON before the National Assembly public hearing – the House Committee on Finance Bill – on November 25, 2019 in Abuja. And that remains the position of ABCON,” he said.

Economy

NBA Demands Suspension of Controversial Tax Laws

Published

13 hours ago

24/12/2025

Modupe Gbadeyanka

By Modupe Gbadeyanka

The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.

In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.

A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.

To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”

“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.

It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”

“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.

“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.

“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.

“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.

Economy

MRS Oil, Two Others Raise NASD Bourse Higher by 0.52%

Published

15 hours ago

24/12/2025

Adedapo Adesanya

By Adedapo Adesanya

Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.

The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.

Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.

Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.

Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.

The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.

By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.

In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.

Economy

NGX All-Share Index Soars to 153,354.13 points

Published

15 hours ago

24/12/2025

Dipo Olowookere

By Dipo Olowookere

It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.

The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.

Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.

Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.

At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.

This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.

VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.

In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.