As a result of the limitations on forex by the federal government, Nigerian banks are reportedly redirecting dollar from licensed Bureaux De Change operators to unlicensed currency sellers in a dubious effort to make profit.

According to an investigation conducted by The Nation, the country has lost about $10 billion from such practices in the last four months.

The currency hawker are in the practice of making huge cash deposits into their bank accounts so as to obtain dollar from the lenders, and owing to the fact that they are unlicensed, they do not have to follow the rules of the Central Bank of Nigeria on quarterly foreign exchange returns filling.

The report states that most of these currency hawkers are prominent at bank branches in Ikeja, Ogba and Maryland, and the Marina areas of Lagos state.

According to a source quoted in the report, BDC operators in Nigeria have lost over N12 billion since the apex bank stopped the weekly allocation of dollar to them.

The source further stated that the CBN had intentionally ignored the illegal practices in the forex market including the refusal to regulate the prices at which the dollar is sold.

Speaking on the issue, the CBN Acting Director of Communications, Isaac Okoroafor, was quoted to have said that the bank cannot control transactions that occur in the black market.

“The interbank market is a segment of the market where we control. There are other sources of getting forex. We can’t control the unorthodox market because as more dollars come in, it helps to moderate the exchange rate.”

“We do not control how banks sell dollars sourced from the unofficial sources. We are not in anybody’s bedroom to see how they get their dollars and how they sell them. But the ones under our control, we look at how they obtain the dollar and how they sell them. And the rules are there, they are all published.”

On his part, the President, Association of Bureau De Change Operators of Nigeria, Aminu Gwadabe, noted that licensed BDC operators had lost a lot under the new CBN forex policies.

“The stoppage of dollar sales to licensed BDCs is now in its fourth month, has shown that our members have lost N12 billion within this period and there is nothing being done by the CBN to cut these loses.”

“As a group, we condemn the practice. People that previously condemned BDCs are now conniving with banks in ripping off the economy pretending that everything is fine. They should be called to order. As a licensed BDC, I should be allowed to sell dollars to my customers provided I provide genuine documentation. Banks that are supposed to advocate transparency are the ones violating the rules of the game.”

He further stated that the association had met with the CBN authorities to iron the issue on several occasions, out but nothing is yet to be done.

“We have held meetings with the CBN and sent proposals to them on the matter. Licensed BDCs should be made agents of payment, and should be allowed to receive Diaspora remittances funds. That market still remains largely untapped. We have also accepted to ensure that our members follow the regulatory guidelines and not sell dollars obtained through the autonomous sources over the required margin.”