Attacks on BDCs wrongly directed, will escalate FX crisis — Peter Obi

The presidential candidate of the Labour Party, Peter Obi, has said that the recent clampdown on Bureau de Change (BDC) operators across the country is wrongly advised, misdirected and will escalate foreign exchange crisis.

According to Peter Obi, The BDCs are not the primary suppliers of forex nor do they create demand. They only provide a market to sellers and buyers of foreign currency

Peter Obi maintained that the only way to stem the tides of the forex crisis is to move the country from consumer to producer economy.

Peter Obi made his stance known via an X(formerly Twitter) post he released on Sunday, 25th February 2024.

They are part and parcel of every economy and can be found even in the developed economies of the world. To think that the BDCs are the cause of the declining value of the Naira is a smack on rational economic thinking.

Obi reiterated that the government must show understanding of the workings of the modern economy and channel their efforts accordingly.

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The recent reported attacks and disruption of the business activities of Bureaux de Change (BDCs) operators in different urban centers across the country by Government Agencies, are ill-advised and wrongly directed.

Rather than solve the problem, the action will further escalate and worsen the exchange rate situation in the country. The BDCs are not the primary suppliers of forex nor do they create demand. They only provide a market to sellers and buyers of foreign currency.

They are part and parcel of every economy and can be found even in the developed economies of the world. To think that the BDCs are the cause of the declining value of the Naira is a smack on rational economic thinking.

The only way to shore up the value of our currency is to move the country from consumption to production, especially export-led production, and fight corruption, which allows unproductive money to pursue the available supply of foreign currency.

As long as Nigeria remains an unproductive economy and corruption continues unfettered with people in possession of unproductive excess cash, the value of our currency will continue to depreciate.

It’s important therefore that government authorities properly understand the workings of a modern economy and channel their efforts accordingly. -PO

Recall that the Central Bank of Nigeria (CBN) last week, directed for an increase in the share capital of Bureau De Change (BDC) operators from N35 million for a general license to N2 billion and N500 million for Tier 1 and Tier 2 licenses.

Within the same week, the Economic and Financial Crimes Commission (EFCC) arrested 12 operators of Bureau de Change (BDC) during a raid at Sabo area in Ibadan North local government area on Wednesday.

Similar raids were also carried out in other states of the federation.