Bureau De Change operators in the country have yet to comply with the new guidelines for the operations released by the Central Bank of Nigeria three weeks ago.
The President Association of Bureau De Change Operators of Nigeria, Aminu Gwadebe, told our correspondent that the non-compliance by BDCs was due to a lack of clarity on the guidelines issued by the central bank.
According to Gwadebe, correspondence to the CBN seeking clarity on the implementation of the guidelines had not been responded to.
The ABCON president said, “We don’t have clarity. For the existing BDCs, what we expect the CBN to do is tell them to come and recapitalise but what is happening is that they should go and re-apply.
“What we would like to know is if the existing licences were withdrawn or revoked. If you are telling me to reapply, is it the same as asking me to recapitalise and this reapplying involves me going to the CAC, getting a name, etc.? It feels like an entirely new process, which for us is against any recapitalisation plan. The entire thing is like a new process so we need to know.”
In the new CBN operational guidelines for BDCs issued in May, which are effective June 3, the apex directed all existing BDCs to re-apply for a new licence according to their preferred categories (Tier 1 and Tier 2 BDCs) and meet the minimum capital requirement of the licence category applied for within six months from the effective date of the guidelines.
According to the guidelines, BDCs with Tier 1 licences are expected to have a capital base worth N2bn while Tier 2 licences must have N500m with non-refundable licence fees of N5m and N2m, respectively.
However, Gwadebe stated that the apex bank had suspended supply to the BDCs since March and was moving towards a complete liberalisation of the foreign currency market, which would not require its intervention.
He said, “The BDC window has been suspended by the Central Bank of Nigeria since around March or so. The last time we were funded I think was around March.
“Our business model was to be funded by the CBN and that is what we have been working with from 2006 till date. That is where most people were making their living and with the new financial requirement, they have made it unattainable for most of our members.
“First of all, I don’t know how many can attempt to meet the N2bn and N500m deposits. Secondly, if they do, what of the profitability of the business? Thirdly, there is no policy consistency.
“You might say, you want to source money from partners abroad but the perception of our policy inconsistency is a big minus. There is no guarantee that in the next one or two years, the policy will even remain. These are some of the challenges surrounding the new regulations,” he lamented.
