LAGOS/Nigeria: The Association of Bureau De Change Operators of Nigeria (ABCON) has called for the collaboration and guidance of the Securities and Exchange Commission (SEC) to harmonize the peer-to-peer (P2P) foreign exchange sector in Nigeria’s burgeoning digital currency market.
During a courtesy visit to SEC’s newly appointed Director-General, Dr. Timi Agama, in Lagos, ABCON President Alhaji Aminu Gwadabe congratulated Dr. Agama on his appointment by President Bola Tinubu. Gwadabe highlighted the significant growth and development of Nigeria’s digital money market, noting the rise of virtual currency fintech startups and the increasing adoption of blockchain-enabled payments.
“Nigerians are embracing digital currencies as a convenient and efficient way to transact,” Gwadabe said. “However, there is still a need to harmonize and regulate this emerging market. BDCs, with their established infrastructure and expertise in currency exchange, are well-positioned to play a key role in this process.”
Gwadabe emphasized that the SEC regulates a sector that poses a threat to the continued existence of BDCs in Nigeria through online virtual transaction platforms, which allow millions of Nigerians to trade foreign exchange without trace and accountability. He noted that ABCON has invested in requisite technology to ensure the business’s continuity and integrity.
ABCON, established in 1991, serves as the umbrella body for all licensed retail foreign exchange dealers. The association aims to liaise with regulators, stakeholders, and security agencies to integrate the retail exchange market into the broader foreign exchange ecosystem.
Currently, over 34 million Nigerians are involved in digital currency transactions, with a market valued at $9 billion annually. Gwadabe pointed out that the future of BDC’s business is in digital currency and stressed the need for inter-agency collaboration to create a working committee for this purpose.
In response, Dr. Timi Agama expressed SEC’s willingness to support the sector’s growth for the country’s benefit. He mentioned that new rules are being implemented to accommodate local intellectuals in developing digital platforms and assured cooperation with ABCON to achieve the desired objectives. Agama directed that the proposed ABCON digital market model, Koletyomoni, be finalized and submitted for review.
ABCON’s technical partner, Mr. Oluwasegun Kosemani, thanked Dr. Agama and his team for their warm reception. He highlighted the extensive resources allocated to the platform’s research and development, emphasizing its potential to harmonize data, promote transparency, and facilitate government revenue through legitimate transactions.
The collaboration between ABCON and SEC is expected to drive the growth and development of Nigeria’s digital money market, leveraging BDCs’ infrastructure and expertise to provide liquidity, security, and convenience to the digital economy.
