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- The Central Bank of Nigeria (CBN) introduced respective measures successful 2024 to betterment Nigeria's overseas speech marketplace and tackle irregularities
- One of the cardinal reforms was the instauration of a caller recapitalisation threshold for BDC operators, and ordering them to reapply
- Despite a six-month hold of the deadline, implicit 90% person failed to conscionable the caller request arsenic the deadline elapses today
Legit.ng writer Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful business reporting crossed integer and mainstream media.
Bureau de Change (BDC) operators person sent an entreaty to the Central Bank of Nigeria (CBN), arsenic implicit 90% neglect to conscionable the revised licence requirements earlier the deadline.
The recapitalisation of BDC operators was 1 of respective moves the CBN adopted successful 2024 to sanitise and fortify Nigeria’s foreign speech market, amid galore teething challenges.
The CBN announced a reappraisal of BDC licences and operational requirements successful May 2024, introducing a two-tier licencing strategy with tier 1 BDC operators mandated to person a N2 cardinal superior base, and tier 2 operators required to person N500 million.
Source: UGC
The CBN besides directed each the operators to reapply for licences with a non-refundable exertion interest of N5 cardinal for tier 1 and N2 cardinal for tier 2 operators.
The reappraisal came with an archetypal six-month deadline, which was aboriginal extended by six months to Tuesday, June 3, 2025. Still, little than 10% of the operators person registered.
BDC operators entreaty for deadline extension
Now, the BDC operators person appealed to the CBN to reappraisal the licence requirements and widen the deadline again to springiness them much country to comply.
Speaking with the News Agency of Nigeria (NAN), the President of the Association of Bureau de Change Operators of Nigeria (ABCON), Aminu Gwadabe, stated that if CBN takes enactment close away, up to 3 cardinal jobs could beryllium lost.
He noted that galore of the operators person inactive been incapable to conscionable the caller superior threshold contempt the earlier extension.
He commended the CBN for the stakeholder collaborations during the hold play and the acceleration of the licensing process.
Gwadabe besides urged the CBN to reappraisal the fiscal requirements to let much members to execute them and forestall occupation losses.
BDC operators see mergers arsenic CBN deadline expires
Gwadabe besides hinted that immoderate operators are considering mergers and capitalist acquisitions successful a bid to conscionable the requirements.
This could impact up to 10 oregon 15 entities coming unneurotic to interval a caller operation arsenic a nationalist constricted liability company.
Gwadabe explained;
“As earlier mentioned, we person besides applied to the CBN for ‘No Objection’ connected our plans to interval nationalist constricted liability institution with the capableness to sorb galore of our members but met a holding effect from the CBN.”Recall that the CBN had waived the licence renewal fees to easiness the load connected BDCs arsenic they enactment towards the caller superior requirements.
Dollar scarcity imminent arsenic CBN insists connected recapitalisation deadline
In related news, experts person warned that determination may beryllium dollar scarcity and a wider spread betwixt the parallel and authoritative markets successful the coming months if the CBN does not widen the deadline for BDC operators again.
They noted that with little than 10% of operators gathering the request arsenic of the expiration of the deadline, implicit 90% mightiness beryllium unopen down, disrupting the FX market.
The CBN, connected its part, has insisted that determination would beryllium nary deadline hold and urged the operators to see mergers.
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Source: Legit.ng
