“How the CBN’s New Regulation for BDCs Will Impact the Sector”: Nigerian Man Breaks Silence
- A Nigerian man posted his view on the CBN’s new guidelines for BDCs, which he supported as a way to formalise the sector and enforce compliance
- The CBN divided the BDCs into two tiers, with different requirements for capital, presence, and locations
- The CBN also announced the recapitalisation of BDCs, with minimum capital of N2 billion for Tier 1 and N500 million for Tier 2, and other fees and deposits to be specified later
A Nigerian man had expressed his opinion on the recent guidelines issued by the Central Bank of Nigeria (CBN) regarding the Bureau de Change (BDC).
In a single X post by @alpanatee, the man stated that the CBN was likely to treat the BDCs as a formal financial institution and non-compliance would result in severe penalties, which he thought was a good idea.
Source: Getty Images
In his words:
"BDCs will now be treated like proper Financial Institutions and be audited... so when they sell to people who are not qualified or without the proper documents, dey go collect."
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The CBN had been said to want to make sure that Tier 1 BDCs would now need to have a national presence, branches and franchises, while Tier 2 BDCs would be limited to one state with a maximum of three locations.
The new regulation had also stipulated the recapitalisation of BDCs: the minimum capital for Tier 1 was N2 billion, and the minimum capital for Tier 2 was N500 million. Other fees and deposits were to be specified later.
In a brief conversation with AbdulFatai Khan, a Key Account Officer at Moniepoint, he spoke at length about the new regulation.
He told Legit.ng:
“It's the way to go. These policies on fx management is long overdue as there's no serious economy that will allow spectators to take a hold of the forex market. There are a lot of illegal forex traders in the parallel market and trading platforms that hike forex prices indiscriminately. It's high time to regulate them more strictly and clamp down on those who are bent on causing more harm to the economy. The authorized BDC operators should be strictly monitored to ensure compliance with these policies and most importantly, the banks. The bank is one the major problem too. The Bank executives that trade with allotted forex for personal gains should also be investigated. The only disadvantage is that those that are gaining from the illegal system will no longer have it. This will add to the level of unemployment in the land and might increase the level of insecurity that is already caused by lack of gainful employment in the country.”
See the X post below:
Man who has $500 cash changes it at official exchange rate, gets 381,765
Meanwhile, Legit.ng earlier reported that a Nigerian man got N381,765 after converting the $500 in his possession at the official exchange rate.
The man, Eniola Akinkotu, said he decided not to change the 500 Dollars he had at the black market rate because he wanted to be part of protecting the Naira.
He said he changed the money at the rate of N763.53 to the Dollar at the official exchange rate. For the $500, he got N381,765.
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Source: Legit.ng
