The Association of Bureau De Change Operators of Nigeria has expressed their strong opposition to the new recapitalisation guidelines recently released by the Central Bank of Nigeria (CBN).
They are calling for an immediate reversal of these guidelines, 21st Century Chronicle reports.
The recently released guidelines introduce a new classification system for BDCs, dividing them into two categories: tier 1 and tier 2. Tier 1 BDCs will now have to meet a minimum capital requirement of N2 billion, along with a non-refundable application fee of N1 million and a non-refundable licence fee of N5 million. On the other hand, tier 2 BDCs will be required to maintain a minimum capital base of N500 million, with a non-refundable application fee of N0.25 million and a non-refundable licence fee of N2 million.
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During a virtual meeting titled ‘New CBN Regulatory & Supervisory Reforms for BDCs: Challenges and Way Forward’, the BDC operators expressed their concerns about the new guidelines, stating that they pose a threat to their businesses.
The President of ABCON, Aminu Gwadebe, delivered the communique at the conclusion of the meeting, outlining the operators’ demands. One of the key demands is for the CBN to permit the current owners of both eligible and revoked BDCs to recapitalize instead of going through the process of reapplication.
In a recent development, a demand has been made for the recognition and inclusion of the current N35 million capital requirements in the process of recapitalization.
ABCON has called for an extension of the compliance time to two years, stating that it would be fair to allow existing BDCs to continue using their generic names instead of registering new names at the CAC.
