The Federal Government has reportedly intensified efforts to clamp down on Bureaux de Change (BDCs) operators across various urban centers in the country. Former presidential candidate of the Labour Party, Peter Obi has criticized these actions, labeling them as ill-advised and wrongly directed, warning that they could exacerbate the already precarious exchange rate situation.
Speaking out against the crackdown, Obi emphasized that targeting BDCs would not address the root causes of Nigeria’s currency depreciation. He stressed that BDCs are not the primary suppliers of foreign exchange, nor do they drive demand; instead, they serve as intermediaries facilitating transactions between buyers and sellers of foreign currency.
“It’s important to understand that BDCs are an integral part of every economy, including those of developed nations,” Obi remarked. “Blaming them for the declining value of the Naira is a fundamental misunderstanding of rational economic principles.”
Obi argued that to stabilize the currency, Nigeria must transition from a consumption-driven economy to one focused on production, particularly export-led production. Additionally, he underscored the urgent need to tackle corruption, which perpetuates the circulation of unproductive funds and fuels the demand for foreign currency.
“As long as Nigeria remains mired in unproductivity and corruption persists unchecked, the Naira will continue to depreciate,” Obi cautioned.
Obi urged government authorities to adopt a more nuanced understanding of economic dynamics and redirect their efforts toward addressing systemic issues rather than targeting BDCs.
