Just In:Ex CBN Chief Faults Emefiele’s Ban On BDC Operators

….Says ‘It Will Be Counter Productive’

Former deputy governor of the central bank of Nigeria, Dr. Obadiah Mailaifia, has faulted the ban on the Bureau De Change, BDC, as announced yesterday by the CBN Governor, Godwin Emefiele.

Mailaifia speaking on the Punch online Forum monitored in Lagos On Wednesday said, it’s akin to changing from one cartel to the other.

He said both the BDC operators and the commercial banks are cartels.

“ The Commercial banks are not in anyway better than the BDC. It’s like changing from one cartel to another.” He said.

Mailaifia who says the problem the depreciation of Naira is facing is far deeper than the issues of the BDC, maintains that multiple exchange rate that has been reduced to about five now is the main problem.

He, however, said that 70% of the Mallam involves in BDC are from the north and a particular state in the north west —Jigawa. He also said they are from a local government in Jigawa.

Explaining that commercial banks are not better, he said when he arrived in Nigeria In 2001 and needed Naira, he approached a bank, which after waiting for about an hour introduced him to a Mallam who eventually gave him Naira in exchange for his dollars. “ The Commercial banks are also cartels. Everything took place inside the banking hall and both parties took their cut and left. So, it’s still the same circle. Nothing changes!’ He said.

Emefiele had while reading the riot act yesterday has, however, warned that any commercial bank that breached the rule will be made to face the consequences. 

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