The Association of Bureaux De Change Operators of Nigeria (ABCON) has called on the Central Bank of Nigeria (CBN) to review the current capital requirements for Bureau De Change (BDC) operators. ABCON President, Aminu Gwadabe, made the appeal in a statement, citing the significant challenge that meeting the current capital base poses for the majority of BDC operators.
The CBN’s new operational guidelines, effective June 3rd, require BDCs to re-apply for licenses under Tier 1 (N2bn capital base) or Tier 2 (N500m capital base) categories. Gwadabe argues that these requirements are too stringent and are hindering the operations of many BDCs. He believes a downward review would allow more operators to remain in business and contribute to the foreign exchange market.
In addition to the capital requirement review, Gwadabe urged the CBN to grant ABCON self-regulatory status. This, he argued, would empower the association to enforce compliance among its members and improve transparency within the industry. He also suggested that the CBN integrate ABCON’s IT platforms to further enhance transparency and efficiency in market operations.
Gwadabe also commented on the recent strengthening of the naira against the dollar in both official and parallel markets. He attributed this positive trend to the newly implemented Foreign Exchange Code, which he believes has boosted investor confidence. He emphasized that addressing the challenges faced by BDCs, such as the capital requirements, would further contribute to the stability and strength of the local currency. He also called for full compliance with the FX Code by all market participants.
