The Association of Bureau De Change Operators of Nigeria (ABCON) has mandated its members to strictly adhere to business hours between 8:00 a.m. and 6:00 p.m., following directives from the Central Bank of Nigeria (CBN) and the National Security Agency (NSA). The move is part of broader efforts to enhance transparency and curb malpractices in Nigeria’s foreign exchange market.
ABCON’s Memo to Members
In a memo titled CBN’s Directive On Opening and Closing Hours of Business, issued on December 10, 2024, ABCON informed its members that non-compliance with the new operating hours would attract severe penalties. The association emphasized the immediate implementation of the directive, particularly for Bureau De Change (BDC) operators located in airports, who must also comply with the Nigeria Civil Aviation Authority (NCAA) regulations.
The memo stated:
“This directive is effective immediately, and any deviation from these stipulated operating hours will result in penalties. It is crucial that all members comply with this new regulation to avoid any punitive measures. We appreciate your prompt attention to this matter and expect full adherence to ensure smooth and compliant operations across all BDCs.”
Addressing Market Inefficiencies
This directive aligns with recent actions by the CBN to reform the Nigerian foreign exchange market. In its November 29, 2024 circular, the CBN introduced updated guidelines for the Nigerian Foreign Exchange Market (NFEM), consolidating FX windows and redefining the roles of market participants.
The revised guidelines aim to address inefficiencies, improve compliance, and promote transparency. One of the key measures includes requiring all FX transactions to be conducted through the Electronic Foreign Exchange Matching System (EFEMS), a centralized platform that also publishes daily FX rates for public access.
Stricter Oversight for BDCs
Under the revised guidelines, licensed BDC operators are now permitted to purchase foreign exchange directly from authorized dealers, subject to a monthly cap. While this offers BDCs greater access to foreign exchange, it comes with increased regulatory scrutiny and stricter operational guidelines.
Implications for the Market
The enforcement of operating hours is seen as a step toward creating a more structured and well-regulated FX system. By standardizing the hours of operation, authorities aim to reduce speculative practices and enhance market stability.
This move underscores the commitment of regulatory bodies like the CBN and ABCON to restore order in Nigeria’s forex market and ensure compliance across all operators. For BDCs, adherence to these directives will be critical to maintaining their licenses and fostering confidence in the system.
The Nigerian foreign exchange market remains a focal point of economic reforms, with these measures expected to drive greater efficiency and transparency in the long term.
