Authorised Forex Traders Lament $2.25bn Loss to Lockdown

By Modupe Gbadeyanka

President of the Association of Bureaux De Change Operators of Nigeria (ABCON), Mr Aminu Gwadabe, has said members of the group lost about $2.25 billion in turnover to the five-week lockdown in Abuja, Lagos and Ogun States.

In a chat with Global Financial Digest, Mr Gwadabe said authorised foreign exchange (forex) traders also lost N1.5 billion in gross profit during the period aimed to stop the spread of coronavirus in the country.

According to him, many of the bureaux de change staff have been at home and are in doubt of their employment status because of the hole created by the global pandemic.

He said the situation has had a negative impact on the operations, profitability, and staff of many members of his association.

“As operators in the financial industry, the COVID-19 has caused protracted impacts on our profitability, staff productivity and turn over.

“We have lost over $2.25 billion in turnover during the lockdown. We also lost over N1.5 billion gross profit in the same period,” Mr Gwadabe informed the journal.

Recall that last week, the Central Bank of Nigeria (CBN) announced the resumption in the sale of forex to some segments of the market.

“In view of the gradual easing of the COVID-19 lockdown both globally and in Nigeria, the Central Bank of Nigeria (CBN) has resumed provision of foreign exchange to all commercial banks for onward sales to parents wishing to pay schools fees and SMEs wishing to make essential imports needed to revamp economic activities across the country. In particular, the CBN is resuming the provision of over $100 million per week for both categories,” a statement from spokesman of the apex bank, Mr Isaac Okorafor, had said.

“The CBN has also made complete arrangements to resume foreign exchange sales to the BDC segment of the market for business travels, personal travels, and other designated retail uses, as soon as international flights resume,” he added in the statement issued on April 29, 2020.

Business Post reports that on Thursday, the Naira closed flat against the Dollar at the BDC market in Lagos at N440/$1.

In Abuja, the local currency traded flat against the US Dollar at N457/$1 and also remained unchanged at the Kano BDC market at N459/$1, but appreciated by N27 at the Port Harcourt BDC market at N430/$1 in contrast to N457/$1 of the prior day.