Lagos - The Association of Bureau De Change Operators of Nigeria (ABCON) has urged the Central Bank of Nigeria (CBN) to review the N35 million mandatory cautionary deposit for bureau de change operators.
ABCON’s President, Aminu Gwadabe, made the call at a meeting organised by the association for its members on Monday in Lagos.
Gwadabe said that the association had recommended the categorisation of the operators with different scopes of business.
He urged the CBN to initiate stakeholders’ sensitisation meetings for a comprehensive discussion of monetary policy related issues before the implementation of the new policy.
The association president said that the capital requirement for the operators did not require periodic increases as obtained in other financial institutions.
"However, it had been reviewed from N250 000 to N500 000 and then N10 million.
"Therefore, we recommend that BDC capitalisation requirement should be reviewed to a maximum of N15 million.
"We also recommend refund of the earlier N500 000 mandatory cautionary deposit of over 2 500 of members before the introduction of additional $20 000 USD (N3.5 million)," he said.
He said that the N500 000 deposit had been with the CBN for more than 10 years.
Gwadabe also urged the CBN to ensure constructive engagement of the stakeholders and extension of the deadline for the deposit.
Gwadabe said that, without the engagement, it would be difficult to settle at the N35 million deposit.
He said that the new policy had the potential to send some operators out of business, thereby destabilising the foreign exchange market.
Gwadabe also said that the policy might empower the black market as well as widen the exchange rate premium.
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