CBN Recapitalization Deadline Extension Requested By BDC Operators

CBN Recapitalization Deadline Extension Requested By BDC Operators

Bureau De Change (BDC) operators in Nigeria have yet to fully comply with new operational guidelines issued by the Central Bank of Nigeria (CBN) three weeks ago, as reported by The PUNCH……….. CONTINUE READING

Aminu Gwadebe, President of the Association of Bureau De Change Operators of Nigeria (ABCON), cited a lack of clarity on the guidelines as the reason for non-compliance. He mentioned that attempts to seek clarification from the CBN had gone unanswered.

Under the new guidelines effective from June 3, existing BDCs are required to re-apply for licenses based on their preferred categories (Tier 1 and Tier 2) and meet minimum capital requirements within six months. Tier 1 BDCs must have a capital base of N2 billion, while Tier 2 requires N500 million, with respective non-refundable license fees of N5 million and N2 million.

Gwadebe expressed concerns over the perceived complexity of the re-application process, which he described as resembling a new licensing procedure rather than a straightforward recapitalization plan.

He also highlighted challenges stemming from the suspension of funding to BDCs by the CBN since March and voiced apprehension over the future profitability of BDC operations amidst policy inconsistencies.

Efforts to obtain clarification from the CBN, according to Gwadebe, have been hindered by communication breakdowns and a perceived lack of responsiveness from the regulatory body.

As of the time of reporting, attempts to reach the CBN’s acting Director of Corporate Communications, Sidi Ali, were unsuccessful, with no response to calls, text messages, or WhatsApp messages.

An anonymous source acknowledged that while compliance among BDCs was still in early stages, adherence to the guidelines was inevitable despite current operational challenges.

The article further noted that since February 27, the CBN had intermittently resumed the sale of forex to eligible BDCs, underscoring ongoing developments in the foreign exchange market regulation.

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