SAN FRANCISCO, July 17, (THEWILL) – The governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has disclosed that about 200 Bureau De Change (BDCs) operators have applied for operating licenses in compliance with the new guidelines issued by the apex bank.
The CBN recently increased the capital base of the BDC from N10 million to N35 million as well as cancellation of multiple ownership structure before July 31.
Emefiele, who made this disclosure before the House of Representatives Committee on Banking and Currency also explained that the decision to review the operational requirements of BDCs in the country, was geared towards safeguarding the nation’s foreign reserve.
According to him, “rather than achieve the laudable objectives for which BDCs were set up to complement the nation’s financial system, operations of the BDCs have over time been bedeviled with rent-seeking, weak operational structure, potential financing of illicit transactions, gradual dollarisation of the economy as well as multiple ownership which were against operational codes and license.”
He dismissed stories that the policy was targeted at a particular section of the country, saying the Bank formulates policies for the good of the entire country.
“There are BDC operators in Lagos, Port Harcourt, Enugu, Calabar and we have them in the North. So it’s very untrue for anybody to think that the policy is aimed at witch-hunting a particular section of the economy,” Emefiele said.
On the July 31 deadline given for recapitalisation of the BDCs, the CBN Governor disclosed that the time frame is not only adequate, and that over 200 BDC operators have already applied for licenses in line with the new requirements.
Earlier, Chairman of the Banking and Currency Committee, Hon. Jones Onyereri, assured the Governor that the House was not out to question the Bank’s authority to regulate the management of foreign exchange in the economy.
He emphasised the need for the apex bank to carry out effective sensitisation and enlightenment campaign with relevant stakeholders and general public before the introduction and implementation of any monetary policy.
Also on Thursday, Speaker of the House, Hon. Aminu Tambuwal , directed the House Committee on Aids and Loans to consider President Goodluck Jonathan’ letter to borrow $1 billion for equipping of the Armed Forces and security agencies, to effectively combat terrorism.
“For this reason, I seek the concurrence of the National Assembly for external borrowing of not more than $1 billion including Government to Government arrangements for this upgrade,” Jonathan had said in his letter.
The Speaker also directed the joint Committee on Finance and Police Affairs to consider the President’s request for the approval of the sum of N79.020 billion as counterpart funding out of the proposed N1.5 trillion for the implementation of the Nigeria Police Reform Programme (NPRP) over a period of six years.
SAINT MUGAGA, ABUJA.
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