Association of Bureaux De Change Operators of Nigeria (ABCON) has proposed a 40 week time table for bureaux de change operators to meet the N35 million new minimum capital requirements.

The Central Bank of Nigeria head office in Abuja.

On June 23rd the Central Bank of Nigeria (CBN) among other things raised the minimum capital requirement of BDCs to N35 million from N10. It also raised the mandatory caution deposit to N35 million from $10,000. On July 7th, the apex bank extended the deadline from July 15 to July 31st, in response to appeals and intervention of ABCON and both chambers of the National Assembly.

Speaking to Journalists on the latest development, ABCON President, Alhaji Aminu Gwadabe said that the Association has proposed a 40 week timetable for BDCs to meet the new minimum requirement, adding that the proposal has been sent to the CBN Governor for consideration.

He said, though the apex bank has extended the deadline by three weeks to July 31st, the time is still too short to enable BDCs comply with the statutory and legal requirements of the new policy. The timetable, he said, contains actions needed to be taken to enhance the successful implementation of the CBN policy for the subsector.

According to Gwadabe, “The timetable starts with sensitisation seminars to educate members on various options to consider in meeting the minimum capital requirement. We plan to hold these seminars in each geopolitical zone of the federation. Moreover, we would assist members scout for consultants to guide them on issues of valuation of existing companies in order to accommodate new members and or achieve harmonious merger. This is in line with what the CBN did for banks during the recapitalisation exercise of 2004”.

He said that in addition to the 40 week timetable, the Association has also appealed to the CBN to take a critical look at the minimum capital requirement of N35 million and the requirement of N35 million as caution deposit, because both requirement implies that the apex bank has raised the minimum capital base of BDCs to N70 million, since