The Association of Bureau De Change Operators of Nigeria is pushing back against the Central Bank of Nigeria’s new capital requirements for their operations. The CBN recently issued guidelines introducing two new categories of licenses with varying capital bases, much to the dismay of BDC operators.
Tier 1 BDCs now need a minimum capital requirement of N2bn, while Tier 2 BDCs must have N500m. Existing BDCs have a six-month grace period to reapply under the new rules. The president of ABCON, Aminu Gwadebe, demands a reversal of the financial requirements, seeking support for existing operators to recapitalize instead of reapplying.
The operators are concerned about the impact on their businesses and are formulating recommendations to present to the CBN. They stress the importance of existing capital requirements being recognized during recapitalization and call for extended compliance timelines and simplified merger processes.
Despite objections from some operators, the CBN emphasizes the need for adherence to governance and financial regulations. Moving forward, the BDC operators aim to enhance their product offerings and engage in advocacy efforts to protect their interests.
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