CBN to refund N35m deposit to BDC operators

The Central Bank of Nigeria says it would refund the N35 million deposit paid by licensed Bureau De Change (BDC) operators across the country.

This was contained in a circular signed by Kevin Amugo, the bank’s director of financial policy and regulation.

The bank asked eligible BDCs to apply for refund by attaching evidence of payment and bank transfer details.

The circular read: “Given the recent development in the operations of BDCs in the economy, the CBN has decided as follows.

“The refund of mandatory caution deposit of N35m to all BDC operators and the retention of N1m licensing fee.

“Therefore, all eligible BDCs may wish to apply for refund of their caution deposits attaching evidence of payment and bank transfer details.”

The apex bank raised the capital base of BDCs to N35m in 2014 to check the persistent depletion in the country’s external reserves.

However, following the decision of the apex bank to stop selling foreign exchange to the operators, the BDC agents demanded for a refund of their money.

Yusuf Ibrahim, chairman of the Association of BDC Operators in Abuja, told NAN that stoppage of foreign exchange had made the licence from CBN “useless”.

“The issue of N35 million deposit has to be revisited. Also, we need to know if this policy is temporary or permanent. This will determine our next action. We are saying this because the licence from CBN is now useless. It does not favour us one bit,” he had said.

“So, they should return this money so that we can put it back into business and make profit.”