2 August 2014

Nigeria: Bureau De Change Operators Race to Beat July 31 Recapitalization Deadline

The Association of Bureau De Change Operators of Nigeria on Friday said majority of its members had complied with the N70 million capital base stipulated by the Central Bank of Nigeria, CBN for operators.

A member of the Association, Harrison Owoh, said that most of the operators were in Abuja to complete the formalities as directed by the CBN.

Mr. Owoh said that although the exercise had destabilized many of his colleague's businesses, most of the operators would not want their licenses revoked after the July 31 deadline.

He said that CBN might publish the list of the defaulting BDCs operators next week.

"I do not know whether there were mergers or outright acquisition of fresh licenses, but majority of our members are in Abuja to complete the CBN documentation processes," Mr. Owoh said.

The CBN had on June 23 raised the minimum capital requirement for BDC operators from N10million to N35 million.

It also raised mandatory caution fee from 10,000 dollars to N35million, bringing the total requirement to N70 million.

But the Association had protested the new requirement to the National Assembly and urged the CBN to give its members up to 40 weeks from June 23 to comply with the directive.

Besides, the Association also appealed to the CBN to reduce the N35 million caution deposit.

However, the CBN stuck to its decision, saying the move was to sanitise the system by ensuring that only serious operators are left in the business.


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