Lagos: Bureau De Change Operators (BDCs) on Monday appealed to the Central Bank of Nigeria (CBN) to further extend the recapitalisation deadline and review license requirements to save jobs. The BDCs, under the aegis of the Association of Bureau De Change Operators of Nigeria (ABCON), made the appeal in an interview with the News Agency of Nigeria.
According to News Agency of Nigeria, ABCON President Dr. Aminu Gwadabe stated that a further extension and review would provide more members with opportunities to meet the new capital threshold. The CBN in May 2024 issued new operational guidelines for BDCs, effective June 3, 2024, requiring all existing BDCs to reapply for new licenses. Tier 1 licenses necessitate a capital base of N2 billion, while Tier 2 licenses require N500 million, with non-refundable license fees of N5 million and N2 million respectively.
Both Tier 1 and Tier 2 BDCs were initially given six months to meet the minimum capital requirement of their respective license categories. However, the apex bank later extended the recapitalisation deadline by an additional six months, set to lapse on Tuesday, June 3. With the new deadline approaching, Gwadabe expressed concerns over potential mass job losses, indicating that less than 10 per cent of his members had complied with the new capital threshold. He estimated that over three million jobs and livelihoods were at risk.
Gwadabe highlighted the need for further extension and a deliberate review of the financial requirements, as some members strive to achieve them. He urged the CBN to continue stakeholder collaboration during the extension period to ease the anxiety, pressures, and tension currently affecting the sector. Additionally, he called for an acceleration of the licensing process to provide hope, clarity, and direction to investors who have met the requirements and prospective investors.
The association has implemented measures to curb job losses, including ongoing engagements with the Central Bank of Nigeria and lobbying other relevant agencies. ABCON members are involved in strategic sessions to identify frameworks such as mergers, investor acquisition, and seeking a ‘No Objection’ from the CBN. This effort aims to allow members to establish public limited liability companies across clusters, promoting more participation and inclusiveness.
Gwadabe explained plans for mergers, which involve identifying like-minded entities to come together and form a new entity. ABCON has also applied to the CBN for ‘No Objection’ on plans to establish public limited liability companies capable of absorbing many of its members, but has received a holding response from the CBN.