- Says Clampdown On BDC Operators Will Worsen Forex Situation
- Warns That Attacks, Disruption Of BDCs Operators’ Businesses Ill-Advised, Wrongly Directed
- Value Of Domestic Currency Will Continue To Fall “As long as Nigeria Remains An Unproductive Economy
The presidential candidate of the Labour Party in the 2023 polls, Peter Obi, has cautioned President Bola Tinubu and government agencies against the clamp down on the operations of Bureau De Change (BDCs) operators in the country.
He described this as ill-advised and wrongly directed which is capable of worsening the foreign exchange crisis in the country.
The Matrix reports that last week, operatives of the Economic and Financial Crimes Commission, EFCC, raided the offices of some Bureau De Change operators in Wuse Zone 4, Abuja, Lagos, Kano and Ibadan, Oyo State and arrested some operators after the naira crashed to about N1900 per dollar at the parallel market.
Reacting to this development in a post on X, the former Anambra State governor said the action would worsen the country’s exchange rate situation and not alleviate the issue, stressing that BDCs are not the primary suppliers of forex.
“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,” Obi said.
“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.”
READ ALSO: CBN Issues Regulatory, Supervisory Guidelines For BDCs, Stakeholders
He said the BDC operators are a ubiquitous presence in all economies, including the world’s most developed countries.
“To think that the BDCs are the cause of the declining value of the Naira is a smack on rational economic thinking,” he said.
“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.”
According to him, it is critical that government officials appropriately comprehend how a modern economy functions and direct their efforts accordingly.
Also speaking on Sunday during an event put together by his supporters to mark the first anniversary of the February 25, 2023, Obi knocked the security agencies for going after Yahoo Boys, whereas the bigger thieves are in government.
READ ALSO: Confusion In Abuja As BDCs Shutdown Operations Over Forex Scarcity
He said: “I heard the other day that the EFCC raided offices of bureau de change operators and arrested some of them because of the continuous fall of the naira against the dollar. This is a completely misplaced priority. Those who are in charge of Nigeria don’t understand our problem and we must dismantle them.
“Wherever I have gone all over Nigeria, North, and South, I have been struck by the reality of poverty, deprivation, and suffering, sometimes written boldly on the faces of people.
“Yet the beauty of our people remains the optimism in their Nigerian identity and the hope they all cherish in the future of our country.
“None of the poor people that I have encountered have ever wished they were not Nigerians. On the contrary, the consensus among them is that Nigeria is a good place ruled mostly by bad leaders.”
Earlier, the Chief Executive Officer of the Financial Derivatives Company, Bismarck Rewane has told President Tinubu to stop chasing shadows with the clampdown on Bureau De Change operators.
Rewane described the move by EFCC on the orders of the federal government as doom.
According to him, BDCs are operating within the ambit of the foreign exchange law and hence should not be given such treatment.
READ ALSO: Confusion In Abuja As BDCs Shutdown Operations Over Forex Scarcity
He urged the government to be more reasonable in dealing with the Naira crisis and the country’s economic challenges.
“Stop all the chasing of shadows, BDCs, by EFCC officers. What crime is being committed? The foreign exchange law allows “willing buyer and will seller”, and nobody is mutilating the currency. The earlier we stop doing doom things, the better for the economy. Let us be more cautious and reasonable because we cannot use one solution to create another problem”, he said.
