Bureau De Change (BDC) operators nationwide are strongly opposing the recent directive from the Central Bank of Nigeria (CBN) that requires them to reapply for licenses under new and stricter guidelines. This directive, announced on Wednesday, has raised concerns among operators regarding its alignment with global standards.
The CBN states that this overhaul aims to improve the regulatory framework and ensure financial stability. However, BDC operators argue that the new requirements could hinder their operations and diverge from international norms.
Haruna Mustapha, Director of the Financial Policy and Regulation Department at the CBN, issued a circular outlining that BDCs will now be divided into Tier 1 and Tier 2, each with specific operational capacities and capital prerequisites. Tier 1 BDCs are mandated to maintain a capital base of N2 billion, while Tier 2 BDCs must hold N500 million.
Aminu Gwadebe, President of the Association of Bureau de Change Operators of Nigeria (ABCON), expressed significant concerns about the increased capital requirements and the tight timeline for compliance. He stated, “The requirement is substantial and not in line with global norms… We need to proceed cautiously to avoid losing our expertise, capacity, and investments.”
Gwadebe also highlighted the risks of exacerbating issues like money laundering due to the stringent and rushed nature of these changes. He noted that the compliance deadline is unreasonably short compared to the leniency typically given to other sectors.
The CBN’s revised guidelines have also eliminated the mandatory caution deposit, reflecting some responsiveness to past feedback from industry stakeholders.
With the implementation date set for June 3, BDC operators are urging a reevaluation of the policy. They are calling on the CBN to consider introducing the new rules more gradually to prevent disruption to existing financial stability and better align with international standards.