The president, Association of Bureau De Change Operators of Nigeria (ABCON), Mr. Aminu Gwadabe has said that the increase in the Bureaux De Change (BDCs)minimum capital requirements to N2 billion from N35 million for Tier-1 BDCs does not follow international best practices.
Gwadabe who made this statement in Lagos during the panel session at the Economic Discourse organised by Vanguard Newspaper said the Bureau De Change forex sub sector has witnessed some policy inhibitors in their various operations.
He said in 2014 the CBN increased the capital requirements of BDCs from N10 million to N35 million and now we are doing the same thing again, noting that even microfinance that is a bank, their capital base is still standing at N200 million. He said that the apex bank is now raising the capital base of BDCs from N35 million to N500 million.- for Tier-2 BDCs and N2 billion, Tier-1, adding that It is highly against global standards.
He, however, said the depreciation in the value of the Naira was caused by the unearned income pursuing the Naira and not as a result of high demand for the Dollar.
The Central Bank of Nigeria (CBN) had approved new guidelines for operations of Bureau De Change (BDCs) and directed all BDCs operators (BDCs) to reapply for new licences by June 3, 2024.
The CBN new guidelines stated that tier 1 BDCs would “have minimum capital requirements of N2 billion, mandatory deposit of N200, 000 non-refundable application fee of N1 million, non- refundable licence fee of N5 million and non-refundable annual fee of N5 million, while tier two BDCs expected to have N500 million capital requirements with non refundable application fee of N250, 000 non-refundable licence fee of N2 million and mandatory caution deposit of N50, 000.”
