Lagos- Association of Bureau De Change Operators of Nigeria (ABCON), has urged the Central Bank of Nigeria (CBN) to extend the deadline of ongoing recapitalisation of bureaus by 40 weeks.

The appeal was made in a statement in Lagos on Wednesday by the President of the association, Alhaji Aminu Gwadabe.
Gwadabe said that the appeal was to enable members of the association to raise the N35 million new minimum capital requirements for their bureaus.

According to him, the CBN’s extension of the deadline by three weeks that will end on July 31 is inadequate for our members to comply with the statutory and legal requirements of the new policy.

He said that the association had sent a document of the 40-week proposed deadline extension to the CBN.

The News Agency of Nigeria (NAN) recalls that the CBN on June 23 announced an increase in the minimum capital requirement for the bureaus from N10 million to N35 million and fixed July 15 as deadline.

But the deadline was extended to July 31 following protest by the bureaus operators.

Gwadabe explained that the proposal sent to the CBN contained actions needed to be taken to enhance the successful implementation of the policy.

According to him, the proposal contains a timetable which will start with sensitisation seminars to educate members on various options to consider in meeting the minimum capital requirement.

He said, “We plan to hold these seminars in each geopolitical zone of the federation.

“Moreover, we will assist members to scout for consultants to guide them on issues of valuation of existing companies in order to accommodate new members or to achieve harmonious merger.

“This is in line with what the CBN did for banks during the recapitalisation exercise of 2004.”

He said that the association had also appealed to the apex bank to take a look at the minimum capital requirement of N35 million and additional requirement of N35 million as caution deposit.

Gwadabe said that a reconsideration of the requirements was necessary because both implied that the minimum capital base was N70 million “since the N35 million caution deposit will not be refunded immediately”.

He urged the CBN to reduce the caution deposit to N5 million, adding that the amount should be deducted from the N35 million.

“This means that there will be a balance of N30 million to be used as working capital by the BDCs,” he explained.
Gwadabe added that the association also recommended that the CBN should allow BDCs which may not afford the new capital requirement to continue to exist “but should not be allowed access to the weekly foreign exchange sales.
“This means that they can trade but will not be allowed to buy dollars from CBN.”