By Onyinyechi Ugwoke
Ever wondered what those Aboki along the road, asking passersby if they have dollars, do with the foreign exchange? Ikeja Bird visited some of the foreign exchange black market traders at Allen, Ikeja.
Exchange for foreign currency is used in transactions such as school fees, personal travel allowance (PTA), basic travel allowance (BTA), medical payments, purchasing goods overseas e.g. Italy, Dubai, China etc. and relocating abroad.
In the Nigeria currency exchange rate, you have the bank rates and the black market exchange rate.
Foreign currency black market is mostly practiced by the northerners, and is a lucrative business. It is not surprising because the Nigerian Naira exchange rate to other foreign exchange rates fluctuate often and people are able to make good profit trading in the black market.
However, while trading in the black market both parties need to be careful because overtime it is now used as a means to carry out dubious and fraudulent activities.
In an interview with Alhaji Mohammed, a foreign currency exchange black market trader, he disclosed that he has been in the business for 25 years and people patronize him because he is not dubious, while he also stated that there are many dubious people in their line of business.
“People that patronize me are those who want to relocate overseas, buy goods overseas or want to open a domiciliary account in the bank.”
He complained that they were losing out now because the Igbos mostly and Yorubas have learnt the business and are now fully involved in foreign exchange black market.
“We are not getting enough gain as before, in an exchange of 100 dollar, you could gain like 5 naira to 10 naira depending on the bargaining price.”
Tobi Bakare, a business man is a victim of fraud by these foreign exchange black market traders. He narrated his experience with one of the Aboki on the island, who exchanged his one thousand dollars to naira with fake naira hidden in the original. “I would rather lose more with the CBN rate than be duped again.”
Emeka Onuoha says he doesn’t change his dollars at the bank, that he has an Aboki exchange trader that changes it for him.
Currently, the CBN governor, Mr. Godwin Emefiele has mapped out plans to discontinue foreign exchange (FX) sale to Bureau de Change operators in the country.
Emefiele said, the decision to eliminate the BDC operators from the FX market was necessitated by their dubious and unwholesome practices.
Just like Mr. Tobi said, I would rather lose more money with the CBN rate than to be duped.
I prefer to go to my trusted aboki for the exchange cos the rate is better than CBN