The Association of Bureaux De Change Operators of Nigeria (ABCON) has urged the Central Bank of Nigeria (CBN) to reconsider the capital requirements set for BDC operators. According to ABCON President Aminu Gwadabe, meeting the new capital base remains a significant challenge for many operators. The request follows the CBN’s operational guidelines, effective June 3, which require Tier 1 BDCs to have a capital base of N2 billion and Tier 2 BDCs to hold N500 million.
Gwadabe also advocated for granting ABCON self-regulatory status, allowing the association to enforce compliance and improve transparency. He emphasized the need for a tech-driven approach by integrating IT platforms into market operations. According to him, these reforms would enhance efficiency and regulatory adherence among BDCs.
On the performance of the naira, Gwadabe attributed the recent currency rally to CBN’s Foreign Exchange Code, which has boosted investor confidence. Over the weekend, the naira strengthened to N1,474.78/$ at the official market and N1,610/$ in the parallel market, marking one of its best performances in months. He believes that further supporting BDC operations will reinforce the naira’s stability.
Additionally, Gwadabe urged BDCs and authorized dealers to align with the FX Code guidelines, emphasizing the importance of risk management and regulatory compliance. He backed CBN’s stance that all forex market participants must submit a detailed compliance implementation plan to the regulator.
In a separate development, the CBN has waived the 2025 annual license renewal fee for all existing BDC operators. This move aligns with the ongoing transition to a new regulatory framework for BDCs under the 2024 Regulatory and Supervisory Guidelines.
Source: Punch