ABCON Seeks SEC’s Collaboration for Efficient Digital Currency FX Sector

The Association of Bureaux De Change Operators of Nigeria (ABCON) has called for Securities and Exchange Commission (SEC)’s guidance and collaboration in harmonising peer-to-peer (P2P) forex sector in the country.

The President of ABCON, ABCON, Alhaji Aminu Gwadabe, made the call during a  courtesy visit to the newly appointed Director-General of SEC, Dr. Emomotimi Agama.

Gwadabe  congratulated the SEC DG on his appointment,  and quickly highlighted that SEC regulates the sector that is a threat to the continued existence of BDCs in Nigeria through online virtual transactions platforms which gives access to millions of Nigerians to trade in foreign exchange without trace and accountability.

He also explained that ABCON has invested in requisite technology to ensure the continued existence of the business and preserve the integrity of the sub-sector. 

He opined that the future of BDC’s business is digital currency. The  ABCON boss  said that the meeting with the SEC DG and the present executive board of the SEC was a follow-up on the earlier online virtual consultation.

Gwadabe said: “ABCON is the umbrella body for all licensed retail foreign exchange dealers, which came into existence in 1991. Our objective is to liaise with our regulators, relevant stakeholders and security agencies as one cannot divorce the retail exchange market from the ecosystem of foreign exchange market seeing that BDC market is global and have been in operation before our independence. It has been there before the creation of the central bank of Nigeria.”

 He explained that the system came under regulation in 1986 during the administration of former President Ibrahim Babangida, who felt the need to formalise the sector through the issuance of licence by the then ministry of finance with the objective to formalising the informal sector.

Gwadabe said that as at today there are  over 34 million Nigerians dealing in digital currency and the number is rising by about nine per cent with a huge market of $9billion annually and there are thousands of multichannel virtual currency fx platforms and none is indigenous to Nigeria. P2P represents individual to individual transaction. · He emphasised that innovation can only be guaranteed on trust.

Responding,  the SEC DG,Agama,  said he understood  ABCON was  desirous of setting up a digital market platform with the intention to be part of the emerging digital currency ecosystem in Nigeria.

He said: “ We at the SEC are open to help the sector grow for the love of the country therefore there will be meetings with the relevant departments of the SEC to detail methods and strategies that will strengthen the Naira through necessary innovative ideas as shared by ABCON.”

The SEC boss  also reiterated that there are new rules put in place to accommodate local intellectuals to develop digital platforms, adding that the commission  will cooperate with ABCON in order to achieve the desired objectives.

Agama, who is highly knowledgeable about the virtual currency market and the market makers,  directed that proposed ABCON presentation and the development of ABCON digital market model named Koletyomoni to be finalised as quickly as possible.

 He emphasised on the powers of the government through, noting that  the agency will not hesitate to use its powers where necessary to keep sanity in the issuance, marketing and trading of securities in Nigeria’s capital market.

ABCON’s technical partner Mr Oluwasegun Kosemani,  thanked the DG  and his intelligently experienced SEC team which had Mr Wale Ajomale for their warm reception and listening to ABCON while making it known to SEC that much resources have been allocated to the research and development of the platform.