Bureau De Change (BDC) operators in Nigeria are yet to comply with the Central Bank of Nigeria’s (CBN) new operational guidelines issued three weeks ago, according to recent findings by The PUNCH.
Aminu Gwadebe, President of the Association of Bureau De Change Operators of Nigeria (ABCON), cited lack of clarity on the guidelines as the reason for non-compliance among BDCs. He expressed frustration over the ambiguity surrounding whether existing licenses were revoked or if operators need to undergo a completely new application process.
Gwadebe explained, “We don’t have clarity. For the existing BDCs, what we expect the CBN to do is tell them to come and recapitalise but what is happening is that they should go and re-apply.”
The new CBN guidelines, effective from June 3, require all existing BDCs to re-apply for licenses under either Tier 1 or Tier 2 categories and meet specific capital requirements within six months. Tier 1 BDCs are mandated to have a capital base of N2 billion, while Tier 2 requires N500 million, with respective non-refundable license fees of N5 million and N2 million.
Gwadebe also highlighted challenges stemming from the CBN’s suspension of forex supply to BDCs since March, noting the impact on operational viability and profitability. He criticized the perceived lack of policy consistency and uncertainty about future regulations, which he believes deter potential investors and partners.
Efforts to obtain clarification from the CBN regarding these concerns have reportedly been unsuccessful, with Gwadebe lamenting, “There is a need for clarity and there appears to be a lot of reorganisation taking place there. So, communication is broken and getting clarification is hard. The CBN is mute or muted as far as I’m concerned.”
Meanwhile, attempts to reach the CBN’s acting Director of Corporate Communications, Sidi Ali, for comments have been unsuccessful as calls and messages remain unanswered.
Sources close to the situation indicate that while compliance with the new guidelines is still in its early stages, BDCs may soon face official notices regarding the cessation of forex sales from the CBN.
The developments underscore growing tensions within the BDC sector amidst regulatory changes, posing challenges for operators navigating the evolving foreign exchange landscape in Nigeria.
As the situation unfolds, stakeholders await further directives from the CBN to clarify operational requirements and expectations for BDCs moving forward.
