Bureau De Change Operators to Receive over N17bn Cautionary Deposit from CBN

The Central Bank of Nigeria has refunded a sum of N17.5 billion to Bureau De Change operators in the country who have so far come forward for their N35 million mandatory cautionary deposit.

According to the Acting president of the Association of Bureau de Change Operators of Nigeria (ABCON), Aminu Gwadabe, 500 members of the association had received the refund from the apex bank. It was made with a three per cent interest paid on the deposit in line with the bi-annual interest that is being paid by the apex bank to the BDC, the last of which was paid in July last year.

The BDC operators are targeting the annual $21 billion average forex inflow from Nigerians in Diaspora for their continued operations, in a heavy demand market.

Meanwhile, the World Bank Migration and Remittances Factbook 2016 showed that Nigerians living abroad sent home $20.8 billion in 2015. The figure is by far the largest volume of remittances to any country in Africa and the sixth largest in the world.

Gwadabe stated that the body has made a proposition to the Central Bank of Nigeria (CBN) to allow its over 3,000 members operate correspondence bank account. It would allow the BDCs receive over $21 billion annual Diaspora remittances and also allowed to operate like money transfer agents.