Bureau De Change (BDC) operators across Nigeria are voicing strong objections to the Central Bank of Nigeria’s (CBN) recent directive requiring them to reapply for licenses under stringent new guidelines. Announced on Wednesday, this directive has raised concerns among operators about its alignment with global best practices. ..Read Full Article
The CBN stated that the overhaul aims to enhance regulatory frameworks and ensure financial stability. However, BDC operators argue that the new requirements could potentially stifle their operations and deviate from international norms.
Naija News previously reported that Haruna Mustapha, Director of the Financial Policy and Regulation Department at the CBN, issued a circular outlining that BDCs will now be categorized into Tier 1 and Tier 2, each with specific operational capabilities and capital requirements.
Tier 1 BDCs are expected to maintain a capital base of ₦2 billion, while Tier 2 BDCs are required to hold ₦500 million.
According to Punch Newspaper, Aminu Gwadebe, President of the Association of Bureau de Change Operators of Nigeria (ABCON), expressed significant concerns regarding the heightened capital requirements and the compressed timeline for compliance. He remarked, “The requirement is huge. It is not in line with global practices… We should be careful so that we do not throw away our experience, capacity, and investment.”
Gwadebe also highlighted the risk of exacerbating issues such as money laundering, which the regulations aim to combat, due to the stringent and rushed nature of these changes. He noted that the deadline for compliance is unreasonably short compared to the leniency typically extended to other sectors.
The CBN’s revamped guidelines have also abolished the mandatory caution deposit, reflecting some responsiveness to previous feedback from industry stakeholders.
With the implementation date set for June 3, BDC operators are calling for a reassessment of the policy. They urged the CBN to consider introducing the new rules more gradually to avoid disrupting existing financial stability and to align more closely with international standards
Be the first to comment