The Association of Bureau De Change Operators of Nigeria (ABCON) has raised concerns over the Central Bank of Nigeria’s (CBN) new capital requirement for Bureau De Change (BDC) operators.
Aminu Gwadabe, ABCON president, told TimesNow.com.ng that the requirements are unattainable and beyond reach for many of the association’s members in the industry.
TimesNow.com.ng had reported in February 2024 that the CBN announced that the minimum capital requirements for BDC operators in Nigeria would be N2 billion for Tier 1 license holders.
The apex bank added that a Tier 2 licence requirement would be N500 million, marking a departure from the previous threshold of N35 million for a general license.
The new directives were contained in the CBN’s revised Regulatory and Supervisory Guidelines for Bureau de Change (BDC) Operations in Nigeria, according to the powers conferred to the central bank under Section 56 of the Banks and Other Financial Institutions Act, 2020 (BOFIA).
The CBN noted that the new guidelines were designed to enhance the regulatory framework in line with ongoing reforms in the foreign exchange market.
While Gwadabe supported the forex market reforms, he said it is difficult for its members to meet the capital requirements.
He said:
He advised the CBN to consider reviewing the policies to reflect global capital requirements to ease compliance, build investor confidence, and sustain exchange rate stability.
Gwadabe emphasised that ABCON is willing to work with the CBN and the association’s members to embrace the review of the apex bank regulation without distorting the fabrics of their existence.
He added:
Earlier, TimesNow.com.ng reported that the CBN reportedly stopped funding for Bureau de Change Operators.
The move aims to test the CBN’s reform template and minimise quick fixes in the FX market.
The CBN is reportedly reviewing significant policies to strengthen the implementation or tweak its reforms.
Proofreading by James Ojo Adakole, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
