BDC Operators Worry About Naira Instability as Nigerians Adopt US Dollars

Bureau De Change (BDC) operators in Nigeria are expressing concern over the depreciation of the naira, leading many citizens to keep their savings in US dollars. Aminu Gwadabe, the National President of the Association of Bureau De Change Operators of Nigeria (ABCON), emphasized the necessity of a liquid forex market to address this trend.

Despite the release of $2.2 billion by the African Import Export Bank (Afrexim Bank), Gwadabe believes it is insufficient to stabilize the market. He calls for a paradigm shift in the supply of dollars to the foreign exchange (FX) market, highlighting the importance of addressing the eroding value of the naira.

Financial analyst Ayokunle Olubunmi supports this view, stating that Nigerians are purchasing and hoarding dollars to meet future financial obligations in light of anticipated naira devaluation. This trend includes individuals planning vacations or funding overseas education for their children. The need for a comprehensive solution to boost the forex market is evident to prevent further panic and erosion of the naira’s value.