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Business - Banking & Finance Updated: April 11, 2024

Allow non-oil exporters to hold FX for 48 hours - ABCON tells CBN

By TIMOTHY TIMILEHIN ENIETAN-MATTHEWS
April 11, 2024
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The Association of Bureau de Change Operators of Nigeria (ABCON) has asked the Central Bank of Nigeria (CBN) to direct non-oil exporters to hold foreign currencies in their domiciliary accounts for 48 hours.

Aminu Gwadabe, president of ABCON, made this known in a statement on Thursday, while lending the association’s support to the recent directive to stop the use of the non-oil export domiciliary accounts deposits for naira loans.

It will recalled that on April 8, 2024, the apex bank directed all banks to stop the use of foreign currency-denominated collaterals for naira loans.

Reacting to this directive, Gwadabe said; “We are bewildered that some companies and manufacturers with huge billions of dollars balances in their non-oil export domiciliary account source their FX needs in the official window and use the same for naira loans”.

“We, therefore, advise for the review of the guidelines on holding currencies on non-oil export accounts to a maximum of 48 hours, to borrow from the South African policy on the operations of non-oil exports Dom account proceeds.

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“The CBN should also not make applicants of huge billions of dollars holding on their non-export oil proceeds Dom accounts eligible for FX request at both the Nigerian Autonomous Foreign Exchange Market (NAFEM) and NAFEX window.”

Gwadabe also called on the CBN to seek legislative backing for its policies and circulars on BDC reforms in order to improve investors’ confidence.

“In the same vein we urge the CBN to upgrade its policies and circulars to legislation regarding the impending BDCS new reforms to give comfort and guarantees to would be investors in the transformation of the BDC industry’s sub sector and allowing only the existing stakeholders the grants father’s right for merger and acquisition to meet the expected reviewed financial requirements as suggested by ABCON,” he said.

“We also want to pledge our continuing support to the CBN’s proactive and effective policies to address our volatility headwinds.”

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