The Association of Bureaux De Change Operators of Nigeria (ABCON) has said there was need to deploy seamless channels that would allow beneficiaries of diaspora remittances easy access to their funds.
In a statement issued yesterday, ABCON President, Aminu Gwadabe, such move would boost Nigeria’s dollar inflows, support naiba’s stability and economic development.
He applauded Central Bank of Nigeria’s policy allowing that beneficiaries of diaspora remittances through International Money Transfer Operators (IMTOs) to receive such inflows in foreign currency (US Dollars) through the designated bank of their choice.
He said such move would put an end to malpractices perpetually making dollar scarce and keeping the local currency at the mercy of the greenback. He said the CBN directives have helped to usher in naira rebound to N465/$ in the parallel market and should be upheld.
Analyzed data on IMTOs inflows into the country over the past year, and through investigations discovered that some IMTOs, rather than compete on improving transaction volumes and create more efficient ways for Nigerians in the Diaspora to remit funds, resorted to engaging in arbitrage arrangements on the naira-dollar exchange rate, which to a large extent resulted in a significant drop in flows into the country.
This encouraged the use of unsafe unofficial channels, which also supported diversion of remittance flows meant for Nigeria, thereby undermining Nigeria’s Foreign Exchange management framework.
The CBN had also blamed MMOs for flouting its directives, insisting that despite spelling out procedures “regrettably, a few operators continue to pay remittances in local currency contrary to the regulatory directive”.
The regulator therefore directed all MMOs to immediately disable wallets from receipt of funds from IMTOs while Payment service providers are directed to cease integrating their systems with IMTOs going forward and must prevent the coming ling of remittances with other legitimate transactions.
Gwadabe insists that for Nigeria to get the full value of what is due to her in the remittance market, BDCs have to be included in the remittances payment channels and allowed to receive funds from Nigerians in Diaspora.
He listed importance of migrant remittances to the economy to include serving as a lifeline for the recipients small house hold in the economy and used for health, nutrition, education and societal needs.
The remittances are also higher than both Foreign Direct Investment and foreign aids flow to the economy and still, are cheaper sources of funds.
Gwadabe said there are over 1.24 million Nigerian Migrants abroad and 50 per cent of them live within the African neighbour hood, and the figure is expected to rise in the coming years.
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