The Association of Bureau De Change Operators of Nigeria (ABCON) has called on the Central Bank of Nigeria (CBN) to retract its newly imposed capital requirements for their operations. The fresh guidelines, issued last Wednesday, mandate significant financial changes for Bureau De Change (BDC) operations across the country.
According to the new rules, BDCs in the Tier 1 category must now have a minimum capital of N2 billion, with a non-refundable application fee of N1 million and a licence fee of N5 million. Tier 2 BDCs face a minimum capital base of N500 million, alongside a N0.25 million application fee and a N2 million licence fee. All existing BDCs are required to reapply for new licences within a six-month period to comply with these new capital requirements.
At a virtual meeting held on Tuesday, titled “New CBN Regulatory & Supervisory Reforms for BDCs: Challenges and Way Forward,” the operators expressed their dismay at the CBN’s stringent measures. ABCON President Aminu Gwadebe, articulating the association’s stance, demanded an immediate rollback of the financial requirements to the previously submitted proposal of N500 million for Tier 1, N100 million for Tier 2, and N35 million for Tier 3, each with varying regulatory engagements.
Gwadebe also urged that existing BDC owners, including those with revoked licences, be allowed to recapitalise without the need to reapply. He highlighted the need for the CBN to acknowledge the existing N35 million capital requirements and integrate them into the new recapitalisation framework.
“The CBN should embark on nationwide enlightenment to address the fears of willing investors,” Gwadebe stated. “The timing for compliance should be extended to two years for fairness. Existing BDCs should be permitted to retain their generic names instead of registering new names with the Corporate Affairs Commission (CAC).”
The operators also called for clarity on the terms of mergers and acquisitions and suggested reversing the stipulated ratio of 75 percent cards to 25 percent cash for transactions to facilitate a smoother transition.
The meeting saw widespread dissatisfaction among the BDC operators, with some expressing outright rejection of the new guidelines. Ibrahim Bala, one such operator, declared, “These guidelines are unacceptable to all.” Kayode Taiwo echoed these sentiments, suggesting that the recapitalisation efforts were merely a government cash grab, doubting any long-term stability under changing CBN leadership.
A representative from Kamal BDC lamented the CBN’s approach, arguing that the bank’s intent to stabilise the market through stringent BDC regulations was misguided.
In its circular, the CBN emphasised that BDC operators must adhere to corporate governance standards and comply with anti-money laundering, counter-terrorism financing, and counter-proliferation financing regulations.
During the meeting, members of the association also discussed the need for innovative product offerings to remain viable in the market and called for increased advocacy and lobbying efforts with the National Assembly to protect their interests.
