CBN Clears 128 BDCs Compliant With N35million Caution Deposit Directive

This followed the removal of the caution deposit for all operators after the regulator stopped dollar sales to BDCs.

Data released yesterday by the apex bank showed that 128 BDCs recapitalised in the last one week, bringing the total number of operators to 2,964.

There were 2,836 operators previously.

The CBN is expected to refund nearly N100 billion to all the BDCs that paid the mandatory N35 million caution deposit that was scrapped last week.

A circular signed by CBN’s Director, Financial Policy & Regulation, Kelvin Amugo, said the decision was reached following recent development in the in the operations of BDCs in the economy, prompting the apex bank to refund the mandatory caution deposit of N35 million each to all BDC operators.

He however, said the regulator will retain the N1 million licencing fee paid by each of the operators. Amugo said the eligible BDCs are expected to apply for refund of their caution deposit, attaching evidence of payment and bank transfer details.

President, Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe told The Nation that the cash refund is a welcome development.

He said the initiative is an indication that the CBN has finally shut its doors to the BDCs. He said since the caution deposit was to enable operators’ access the official forex window, the stoppage of dollar sales to BDCs by the CBN means the fund should be refunded.