BDC New Policy: Kwankaso Kicks, Argues most Operators are Northerners, Emefiele says 200 BDCs have Met Requirements

The Governor, Central Bank of Nigeria, Godwin Emefiele, on Wednesday disclosed that over 200 Bureau de Change companies have met the new guidelines introduced by the bank recently. 
This is even as Kano state governor, Rabi’u Kwankwaso said the policy will lead to lost of jobs, lamenting that majority of the operators are from the Northerner part of the country.
Other analysts argue that past policies that led to the lost of jobs in the banking industry affected most people from Southern Nigeria and no fuse was made over it.
The CBN had recently increased the capital base of the BDC companies from N10 million to N35 million, among other guidelines. It gave the BDC companies until July 31, 2014, to comply. 
Emefiele, who stated this when he appeared before the House of Representatives’ Committee on Banking and Currency, said the time frame given to the BDC operators to comply was adequate. According to the CBN governor, the bank is committed to stemming the depletion of the country’s foreign reserves from unproductive transactions. Far from achieving the objectives for which BDC companies were set up, the CBN boss said the operations of the BDC had been characterized by rent-seeking, weak operational structure, financing of illicit transactions, gradual dollarization of the economy and multiple ownership of BDC licenses.
Kano State Governor Rabi’u Kwankwaso has appealed to the Central Bank of Nigeria, CBN, to revise its new policy on Bureau De Change, BDC, operation in the country, saying that part of the measures introduced to sanitise the sub-sector will be counterproductive.
Kwankwaso spoke while receiving a Micro finance banking team from the Central Bank of Nigeria and a team of financial experts from Bangladesh who visited him at the Government House, Kano.
The governor added that as entailed in the new policy, the increase in the minimum capital requirement of N35million for Bureau De Change operation in the country, representing 250 per cent raise from the previous N10million would render many operators out of business.
According to the governor, many of the operators cannot meet the new benchmark, saying that there is the need to note that majority of them are form northern part of the country.
The CBN had recently issued its “Guidelines for International Money Transfer Services in Nigeria”, which the apex bank explained was in line with the provisions of the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act 17 of 1995 and the Banks and Other Financial Institutions Act, BOFIA of 1991, which empowered it to license and regulate BDC operations in the country to achieve set objectives.

Leave a Reply

Your email address will not be published. Required fields are marked *