The manufacturers Association of Nigeria (MAN) has urged the Central Bank of Nigeria (CBN) to put a monitoring mechanism in place to check the activities of bureau de change (BDC) operators in order to curtail further depreciation of the naira.
Speaking with LEADERSHIP in Lagos, the chairman, Toiletries and Cosmetics group of the Manufacturers Association of Nigeria (T&C Group of MAN), Mr Ikpong Umoh, advised the apex bank to fund businesses that would add value to the economy, instead of selling dollar to BDC.
He said, “I do not support the issue of CBN selling dollar to BDC. The CBN should tread with caution to protect the naira, because operators of BDC are among those bastardising our local currency. They are hawking dollar in such a manner that depreciates the naira so much. For instance, they can get forex from the official window of the apex bank at N306, only to sell at over N490, at a very high rate.
“You can see the wide margin they make. This clearly shows that the BDC operators in the country also constitute another CBN on their own. The CBN should fund manufacturers to boost productive activities in the country. The CBN is not monitoring activities of the BDC operators adequately at present.
“They do not keep a single financial record of their activities. Some of them keep triple records. This implies that they keep numerous records. So, they show the CBN records that are totally different from the businesses that favour them. The CBN should fund local manufacturers who import raw into the country, to add value to the economy in job creation, instead of BDC operators. The people BDC are funding now are traders who engage in buying and selling of imported goods, without adding any value to the economy,” he said.
Umoh said some of these traders import goods that could be made locally were imported from China and other countries to the detriment of local manufacturers in Nigeria.
Responding to question on how BDCs could get forex without the support of the apex bank, he said BDCs can source from autonomous market and from people coming into the country.