Bureau De Change Traders Associations in Wuse Zone 4, Abuja, has urged the Central Bank of Nigeria to dialogue with operators before implementing the new N35 million minimum capital requirement.
The Chairman of the association, Alhaji Salisu Garu, made the call in an interview with the News Agency of Nigeria in Abuja on Wednesday.
NAN recalls that the apex bank on Monday issued a circular that it would increase the minimum capital requirement of bureau de change from N10 million to N35 million.
Garu said that dialoguing with operators would help the CBN to understand the challenges in the business and know how best to formulate and implement its policies.
He said: “I think the policy is not done yet.
“For me, I don’t think they have released the full policy.
“If they are increasing the capital base, they should be able to increase the amount of dollar they sell to us weekly.
“I think, the CBN needs to come and discuss with us so that our business will not be badly affected.”
The chairman said that over the years when the capital requirement was increased, the dollar sold to bureau de change also increased.
Another competent operator in the industry told NAN on condition of anonymity that the new policy would cripple the small bureau de change.
He said: “Having a critical look at the circular, I may say that it has more negative effect than the positive side to the market.
“Because having increased the initial capital from N10 million to N35 million will eliminate a lot of stakeholders.
“Many people may not be able to pay the N35 million as capital.
“And as a result of that, a lot of bureau de change are going to be eliminated and many people will be out of business and it will end up mounting pressure on the Naira.”
According to him, the few people operating in the market will manipulate the market, hoard dollars and make the naira victim of the market.
The source said: “For instance now, we have more than 1,000 bureau de changes that collect $50,000 each per week.
“If for any reason that amount goes down, definitely the demand of the market is not going to be met.
“And once we have a demand in the market and supply is less, automatically naira suffers.
“That is why we have not been able to achieve stability in the market.”
The operator said the CBN should be able to sensitise the people to change their attitude toward the use of hard currency.
Nigerian elite and politicians, the operator added, should be well sensitised to use the local currency rather than foreign currency.
Also, another operator, Malam Mustapha Abdullahi, told NAN that the policy might have little positive implication and more negative effect.
According to Abdullahi, the positive aspect of the policy will be to reduce the number of operators and bring about little sanity in the system.
He said: “But one thing I know is that the new capital requirement is too high for young people like me just starting the business.
“Again, renewal fee that used to be N10,000 has been increased to N250,000.
“How do they want people to get such money?
“Today, $50,000 they pay us, they want to reduce it to $15,000.
“This is not good for the business.”
Abdullahi urged the CBN not allow only rich people to control the industry because it would create more problem for the economy.
Trending
- 30-year-old charged with stealing N1.2m from dead man’s bank account
- Court remands task force official for alleged murder
- EFCC has adjusted its blunder, now claims Bello stole N80b within first three weeks in office — Media Office
- PDP Caucus extends Damagum’s tenure as acting Chairman
- Lagos reacts to allegation of Ministry’s refusal to shelter minor forced to have abortions
- AltBank, Sterling One Foundation, Lagos Foodbank combat hunger, champion education
- Nigerian professors jailed in Cameroon petition House of Reps
- Stanbic IBTC seeks way to maximise Nigeria’s energy potentials