- The Central Bank of Nigeria (CBN) has extended the deadline for Bureaux de Change Operators to recapitalise their operations
- The CBN extended the recapitalisation deadline from December 3, 2024, to June 3, 2025M amid low compliance from operators
- The President of the Association of Bureaux De Change Operators, Aminu Gbadabe, disclosed this in a virtual meeting
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Central Bank of Nigeria (CBN) has extended the deadline for the recapitalisation of Bureau of De Change (BDC) operators from December 3, 2024, to June 3, 2025.
The President of the Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, stated this at a virtual emergency meeting by ABCON members.
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ABCON president reveals reasons for extension
Gwadabe explained that the apex bank extended the deadline by six months due to operators’ low compliance with the recapitalisation requirements.
The meeting was part of the association’s ongoing engagements with the CBN to ensure a smooth recapitalisation process.
The ABCON president thanked CBN for extending the deadline and assured the members that the bank is committed to working closely with them to ensure a seamless process.
According to a BusinessDay report, the recapitalisation deadline applies to existing operators, while new ones seek an indefinite timeline to obtain them.
Critical provisions of BDC operations
The ABCON boss encouraged members to leverage the opportunities to recapitalise.
He listed some key provisions of the CBN rules governing BDC operations, saying the provisions empower the operators to acquire foreign currency from various sources, sell foreign currency, open foreign currency and naira accounts with commercial banks, and partner with their banking partners to issue debit cards.
Legit.ng earlier reported that under the new guidelines, Tier-1 BDCs must raise a minimum capital of N2 billion to continue to operate, while Tier-2 BDCs must raise a minimum of N500 million.
Tier-1 BDCs will operate nationally, while Tier 2 can only operate in a state.
The naira depreciates in the parallel market
The development comes amid the depreciation of the Nigerian currency, the naira, in the parallel market.
According to data from black market operators, the naira fell to N1,770 per dollar, down from N1,750 traded over the weekend.
Abbas Yishau, a foreign currency operator on the Ogba axis of Lagos, explained that the demand for the US dollar swarmed operators.
“We experienced heightened forex demand from buyers on Monday, November 25, 2024. The reason is because of those travelling or wanting to import products for the yuletide,” he said.
ABCON sends a message to CBN over struggle to recapitalise
Legit.ng earlier reported that 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 Legit.ng that the requirements are unattainable and beyond the reach of many of the association’s industry members.
In February 2024, the CBN announced that the minimum capital requirements for BDC operators in Nigeria would be N2 billion for Tier 1 license holders.
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Source: Legit.ng