For the second time in three months, the Central Bank of Nigeria (CBN) has updated the list of Bureaux De Change (BDC) operators that successfully met the new capital requirement of N35 million, saying a total of 2, 512 BDCs have scaled the recapitalisation hurdle. It means the CBN has recertified 15 more BDCs.
While the CBN had on August 15 announced that a total of 2, 442 BDCs met the new capital requirement as at July 31, 2014, the apex bank added 51 more BDCs to the list on September 5 increasing the number to 2, 493.
Before the hike in minimum capital requirement from N10 million to N35 million, a total of 3, 208 BDCs were officially registered with the CBN.
Based on the list published by the Financial Policy and Regulation Department of the CBN, the 2, 512 recapitalised Bureaux De Change operators are located in 28 states of the federation. The states are; Lagos, Kano, Abuja, Anambra, Delta, Bauchi, Sokoto, Kebbi, Edo, Imo, Oyo, Borno, Rivers, Plateau and Enugu. Others are; Kaduna, Abia, Ebonyi, Benue, Niger, Aba, Bayelsa, Akwa Ibom, Kogi, Katsina, Jigawa, Kwara, and Cross River.
The CBN had on Monday June 23, 2014, increased the minimum capital requirement for Bureaux De Change operation in Nigeria, to weed out unserious elements in that sub-sector and correct some grave inefficiencies and sharp practices.
The new guidelines further stipulated a mandatory cautionary deposit reviewed to N35 million which was expected to be deposited in a non-interest yielding account in the CBN upon the grant of an approval- in-principle.
The CBN directed all existing Bureaux De Change to comply with the new requirement on mandatory cautionary deposit by July 15, 2014, and urged all new applicants to comply with these new requirements.
The CBN said apart from the fact that the N10 million minimum capital requirement was no longer adequate, it had also observed some deficiencies in the operational effectiveness of Bureaux De Change which had led to gross inefficiencies and sharp practices in the foreign exchange market.
The apex bank further warned that ownership of multiple Bureaux De Change was no longer permissible and would attract sanctions if detected.
However, the compulsory membership of the Association of Bureaux De Change Operators of Nigeria (ABCON) is no longer a requirement for the licensing of Bureaux De Change in the new era. Daily Independent
