CBN To Raise BDC’s Share Capital To ₦2 Billion - Business

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CBN To Raise BDC’s Share Capital To ₦2 Billion - Business - Nairaland

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CBN To Raise BDC’s Share Capital To ₦2 Billion by nlfpmod: 9:19am On Feb 24

The Central Bank of Nigeria is considering increasing the share capital of Bureau De Change operators to N2bn and N500m for Tier 1 and Tier 2 licences.

The currency operators were previously charged N35m for a general licence.

This was contained in the draft paper of a “Revised Regulatory And Supervisory Guidelines For Bureau De Change Operations In Nigeria” published by the apex bank on Friday.

The new guidelines contain several new changes to the guidelines for BDC operations in the country and if endorsed will be effective at a date decided by the CBN.

Recently, operations of the currency operators have suffered heavy backlash following the free fall of the naira against the dollar.

Government officials have severely blamed the black market operators for this fall though liquidity remains a huge challenge.

This week, operatives of the Economic and Financial Crimes Commision arrested over 250 BDC operators in Abuja and many more in other states of the federation.

Under the minimum capital requirements, the central bank is introducing a two-tier license for BDC operators in the country.

The guidelines read, “A Tier 1 BDC is authorised to operate on a national basis can open branches and may appoint franchisees, subject to the approval of the CBN.

“A Tier 1 BDC (which is the franchisor) shall exercise supervisory oversight over its franchisees. All franchisees shall adopt their franchisor’s name, branding, technology platform, and rendition requirements.

“Also, a Tier 2 BDC is authorised to operate only in one state or the FCT. It may have up to three locations – a head office and two branches, subject to approval of the CBN. It is not permitted to appoint franchisees.”

“Under Tier 1, operators are expected to have N2bn as minimum share capital while also depositing a Mandatory Caution Deposit of N200m.

“The application and licence fee is also N1 million and N5 million respectively.

“Under Tier 2, operators are expected to have N500 million as minimum share capital while depositing a Mandatory Caution Deposit of N50 million. The application and licence fee are also N250,000 and N2 million respectively.”

The apex bank also stated that the prescribed minimum capital of BDCs and any subsequent capital injection shall be subject to verification by the CBN.

https://punchng.com/just-in-cbn-may-increase-bdcs-share-capital-to-n2bn/

10 Likes 3 Shares

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by oluwaseyi0: 9:21am On Feb 24

Do they want to bring them to the level of banks?

main question is how are the BDC getting dollars?

30 Likes

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Biodun556(m): 9:21am On Feb 24

CBN is working hard

Selling dollars on the streets like pure 💦 water should be criminalized it doesn't happen anywhere in the world except Nigeria

202 Likes 8 Shares

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by tonicyril: 9:21am On Feb 24

Sentiment apart, please someone should enlighten me.

Why do we need BDC?

To me this is one of the problems we have as a nation

Imagine a bank ceo collecting dollars from central bank, refused to use it judicially but sell it to the BDC operators for higher gains and later he will be building university in marina island.. embarassed

82 Likes 2 Shares

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by saintruky(m): 9:22am On Feb 24

This is lugubrious

1 Like 1 Share

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by tefishy(m): 9:23am On Feb 24

BDC don finally buy market. cheesy

19 Likes

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by ThierryJay: 9:23am On Feb 24

Commendable. But really they should also flood the system with forex to address the supply issues and reduce pressure on the naira.

And while at it, the CBN should also remember to regulate itself, the banks and engagements with politicians as they are the biggest culprits putting pressure on the naira through the same BDC racketeering.

10 Likes

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by EbolaTinubu: 9:24am On Feb 24

Rubbish

1 Like

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by apesinola001: 9:24am On Feb 24

Nigeria is moving
CBN IS WORKING

9 Likes 1 Share

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by EbolaTinubu: 9:24am On Feb 24

Biodun556:
CBN is working hard

Keep on deceiving yourself zombie

10 Likes

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by david22uu(m): 9:24am On Feb 24

nawa o

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by EbolaTinubu: 9:25am On Feb 24

apesinola001:
Nigeria is moving
CBN IS WORKING

Zombie, moving to where?

Ebin pawa oh

10 Likes

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by VeeVeeMyLuv(m): 9:25am On Feb 24

What's the difference between BDCs and Binance P2P

there is no difference at all. All of them Na the same thing

3 Likes

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Anguldi(m): 9:25am On Feb 24

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Anguldi(m): 9:26am On Feb 24

tefishy:
BDC don finally buy market.

Wahala

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by HBB1(m): 9:26am On Feb 24

Too small, should be higher.

2 Likes

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Biodun556(m): 9:26am On Feb 24

oluwaseyi0:
Do they want to bring them to the level of banks?

main question is how are the BDC getting dollars?

That's the practice in advance countries

9 Likes

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by datola: 9:26am On Feb 24

Henhen

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Didijiji: 9:26am On Feb 24

My question is this... Why cant we have just the banks serve $ customers?

Naira customers are like 85% of the total numbers of customers accessing banking service in Nigeria
Dollar customers are 15% of this number

If the banks can serve 85%, why do we need a parallel market for 15% with their very small population?

Same bank branches should attend to the needs of all classes of customers

34 Likes 1 Share

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Didijiji: 9:26am On Feb 24

Biodun556:
CBN is working hard

Selling dollars on the streets like pure 💦 water should be criminalized it doesn't happen anywhere in the world except Nigeria

LAGOS BUILDER

Define hard work and it's result

Person dey work hard dollar dey sky rocket

Painfully the so-called hard workers used innocent dollar @216 to protest and deceive the largest black population in the world

SCAM COMES IN DIFFERENT FORMS LAS LAS

10 Likes 1 Share

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Maxcollins042(m): 9:27am On Feb 24

If only they will channel similar concerted effort into diversifying the economy

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Immatex(m): 9:27am On Feb 24

The guidelines simply aims to drive Northerners out of their own tuff. This regulation by CBN is laughable. Such high handedness will continue to encourage illegal BDCs. This is just using grammar to ask BDCs as we know it to stop operating. Even in developed economics, changes are introduced in stages not to lump everything together and make it cumbersome for business people. This adminstration is desperate to prove they are working but their actions are that of a paranoid and power drug authocrat.
This policy has no human face, is targeted at provoking legitimate businesses to close shop and might still achieve little or nothing

5 Likes

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Biodun556(m): 9:27am On Feb 24

tefishy:
BDC don finally buy market.

How do we expect people to selling dollars like pure water without profiteering it?

CBN is just waking up

6 Likes 1 Share

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Adebaba1(m): 9:27am On Feb 24

Cardoso is really trying

To be candid, all his policies make sense, even pwc and kpmg all supports his policies

It is just sad his efforts are not reflecting

I know with time,it will work

14 Likes 1 Share

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by aribisala0(m): 9:27am On Feb 24

Aboki won't like this

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by CandidAdmin(m): 9:27am On Feb 24

In layman's terms?
Anyone?

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by magoo10(m): 9:27am On Feb 24

Just stabilize the naira because we know the competency of taking prices back to what it used to be is not there.

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Biodun556(m): 9:28am On Feb 24

aribisala0:
Aboki won't like this

They are criminals

1 Like

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by PARADIZEPRIEST: 9:29am On Feb 24

oluwaseyi0:
Do they want to bring them to the level of banks?

main question is how are the BDC getting dollars?

THAT IS WHERE THEY DUMP DRUG MONIES,SCAM FRAUD MONIES,ILLICIT FUNDS FUNDS BDCS.
BDCS SHOULD BE BANK SUBSIDIARIES TO STOP STREET DOLLAR HAWKERS FROM WORKING WITH THE STREETS.
WE NEED SANITY IN FOREX.THAT IS THE SOLUTION. angry

5 Likes

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