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2,618 BDCs meet new capital requirement

By on March 31, 2015

The Central Bank of Nigeria has added 32 bureau de change operators to the list of firms that have complied with its new capital requirements.

The number of licensed BDCs has, therefore, increased to 2,618 from the 2,586 firms earlier published by the CBN in February, according to a new report on the bank’s website.

The CBN had in January published a list of 2,544 operators that met the recapitalisation requirement, up from 2,442 in September last year.

The latest list of confirmed BDCs that are in compliance with the new capital requirements showed that most of the operators are located in Lagos, Kano, and Abuja, with one each in Kaduna and Anambra.

Prior to the recapitalisation exercise, there were 3,208 registered BDCs operating in the country.

The CBN had in June last year announced a new minimum capital requirement of N35m for the operation of BDCs in the country, up from N10m. It also increased the mandatory cautionary deposit for the BDCs to N35m.

The regulator had then stressed that only the BDCs that met the new requirements would qualify to be engaged as agents by the licenced international money transfer operators for inward and outward transfer business in Nigeria.

The central bank stated that it expected the emergence of well-capitalised and structured entities that could effectively perform the roles of the BDCs in the economy as well as partnership between the BDCs and renowned companies engaged in inward and outward money transfer in Nigeria.

It also said it expected the creation of robust and sustainable business franchises not dependent on rent-seeking activities, but properly situated to compete in the foreign exchange market and deliver superior values and returns.