CBN To Raise BDC’s Share Capital To ₦2 Billion - Business (4)

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CBN To Raise BDC’s Share Capital To ₦2 Billion - Business (4) - Nairaland

Nairaland Forum / Nairaland / General / Business / CBN To Raise BDC’s Share Capital To ₦2 Billion (14002 Views)

Abdulsamad Rabiu Becomes Nigeria’s Second Richest Man, Now Worth $7.2 Billion / CBN To Refund ₦35 Million Capital Deposits To BDC Applicants / FBI List: EFCC Goes After Bankers, BDC Operators Aiding Cybercriminals (2) (3) (4)

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Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Tap0lane: 11:19am On Feb 24

Na 2 billion dem cap your own bank ?

oluwaseyi0:
Do they want to bring them to the level of banks?

main question is how are the BDC getting dollars?

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Biodun556(m): 11:21am On Feb 24

optimusprime2:

No sir it does, please FX black markets exist in many countries apart from Nigeria and this list is not even exhaustive.

1. In Egypt
2. Ethiopia
3. Iran
4. Argentina
5. Zimbabwe
6. Venezuela
7. Cuba

Black markets generally exist when an open market is not allowed to exist. During the military rule in Nigeria, the Black markets were born and they have played a vital role in Nigeria's Economy.

After the start of democracy they were fully legalised and integrated into the FX ecosystem by the CBN.

So please what is going on now with currency valuation has very little to do with them but rather the government.

Mention advance economy, even South Africa has strict rules on forex

4 Likes

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Biodun556(m): 11:22am On Feb 24

optimusprime2:

No sir it does, please FX black markets exist in many countries apart from Nigeria and this list is not even exhaustive.

1. In Egypt
2. Ethiopia
3. Iran
4. Argentina
5. Zimbabwe
6. Venezuela
7. Cuba

Black markets generally exist when an open market is not allowed to exist. During the military rule in Nigeria, the Black markets were born and they have played a vital role in Nigeria's Economy.

After the start of democracy they were fully legalised and integrated into the FX ecosystem by the CBN.

So please what is going on now with currency valuation has very little to do with them but rather the government.

Mention advance economy, even South Africa has strict rules on forex

3 Likes

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by InvertedHammer: 11:37am On Feb 24

/
They can raise it to N10 billion if they want. The oga will get the license and send his boys out at street corners to hustle for customers. The way those aboki operate within their BDC network tells that they are highly organized. One phone call and transactions happen.

CBN is acting as if BDC operators are the de facto exchange rate determinants. BDC operators are filling the void that corrupt banksters are creating through arbitrage.

/

3 Likes

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by EleventhWeirdo: 11:44am On Feb 24

EbolaTinubu:

E pain am
No be your coward tribe they shout ebin pawa every time they faint for road? Mumu
Na hunger and poverty go finally quench you and your entire family zombie without functioning brain

Mynd44
Seun
Lalasticlala
Dominique
Mukina
Justwise
Fynestboi
Jarus

Rule 2

1 Like

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Yagier: 11:48am On Feb 24

EbolaTinubu:

The bad things that you and your like are wishing Nigerians is going to wipe you and your entire lineage full

mumu I’m not wishing bad on anyone I’m only wishing you what you wish Nigeria cox your candidate didn’t win….you guys don’t even know what you’ve done with your chest beating in yoruba land I give you guys 5-7 years that monopoly the Igbo enjoy in business would be taking off the table soon…other tribes are waking up to how the igbos have monopolies certain businesses.

2 Likes

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Never4getU: 11:59am On Feb 24

nlfpmod:

https://punchng.com/just-in-cbn-may-increase-bdcs-share-capital-to-n2bn/

Dey play

Northern Govs will use their state treasury in their favor instead if u think u can affect them na play u dey cool

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Immatex(m): 12:15pm On Feb 24

chidiokay:

what is cucumbersome about the directives, do BDC and business people work under same regulations & policies

what is Cbn about to do to BDC that is different from what was enforced on Banks ...the 25m capital base on banks was its gradual, did it kill our banking sector or made it stronger

OF what economic importance or impact is BDC operators that you expect the govt to be considerate at the detriment of the economy/naira value. whu bdc help

Lets face the truth, BDCs are expendables but that is like cutting off the North, that they are allowed to exist is enough for "human face"

The same CBN floated the Naira with the slogan "willing buyer and willing seller". Are BDCs not fulfilling this slogan?
I am not against standardising their operations, but this fire-brecade policy with it's high capital investment requirements targeted at turning BDCs to banks with high tech reporting should come in phases and not rushed.
There's a risk to business survival. BDC business is not a taboo business. Its should not be eradicated which this policy is tactical aimed to achieve.
The CBN is well known to blame everyone and everything except itself for the poor performance of the Naira.
The country's economy as it is today is now an ethnic topic, with Yorubas now claiming to love Nigeria more than the other ethnic groups.
CBN's blame sharing might end up doing the Naira more harm than good.
The problem with the falling Naira is not BDCs. You can't operate a debt driven economy and expect your currency to outperform your creditor's.
So this autocratic and toutish approach to economic management to attempt to please citizens is not guaranteed to work, it's simply trial and error.

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by dfrost: 12:36pm On Feb 24

tonicyril:
Sentiment apart, please someone should enlighten me.

Why do we need BDC?

To me this is one of the problems we have as a nation
[

They know the root of the problem, but they won't tackle it.

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by pacificom: 12:46pm On Feb 24

Biodun556:
CBN is working hard

Selling dollars on the streets like pure 💦 water should be criminalized it doesn't happen anywhere in the world except Nigeria

I think government can enforce commercial banks under tough regulations and supervised environment to sell dollars to public in lieu of BDC

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Trimjos: 12:53pm On Feb 24

Biodun556:

Mention advance economy, even South Africa has strict rules on forex

Shut up there. Keep shifting goal post.

As if Nigeria is an advanced economy..

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by chidiokay: 1:14pm On Feb 24

Immatex:

The same CBN floated the Naira with the slogan "willing buyer and willing seller". Are BDCs not fulfilling this slogan?
I am not against standardising their operations, but this fire-brecade policy with it's high capital investment requirements targeted at turning BDCs to banks with high tech reporting should come in phases and not rushed.
There's a risk to business survival. BDC business is not a taboo business. Its should not be eradicated which this policy is tactical aimed to achieve.
The CBN is well known to blame everyone and everything except itself for the poor performance of the Naira.
The country's economy as it is today is now an ethnic topic, with Yorubas now claiming to love Nigeria more than the other ethnic groups.
CBN's blame sharing might end up doing the Naira more harm than good.
The problem with the falling Naira is not BDCs. You can't operate a debt driven economy and expect your currency to outperform your creditor's.
So this autocratic and toutish approach to economic management to attempt to please citizens is not guaranteed to work, it's simply trial and error.

You keep talking about phases ... capital base raise sounds to me like a "one time directive" .. so how do you dice "One time" into phases

Nigeria economy is on the verge of sinking, meaning we have a very limited time and here you are proposing phases on top capital base, so which year we go come move to overhauling & digitalizing the parallel market.

I can excuse BDC for the devaluation of Naira Buh the present "free fall of Naira" is traceable to the BDC, cos the BDC market provide facility to harbor saboteurs, speculators and hoarders. i know the banks are not innocent buh the "black market" is the queen on the chess board ... pls let that sink

For instance no matter how lucrative toyota corrolla part are, if there is no market that will buy it, that automatically exterminate the theft.

However, BDC is a licensed operation what the govt can do to overhaul that sector is raise the requisite to have a sizeable operators, what is sizeable can be easily monitored.
Raising the capital base for BDC is commendable and a step in right direction

2 Likes

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by EbolaTinubu: 2:05pm On Feb 24

EleventhWeirdo:

Mynd44
Seun
Lalasticlala
Dominique
Mukina
Justwise
Fynestboi
Jarus

Rule 2

E pain am ntooor
Shut up zombie

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by ivolt: 3:15pm On Feb 24

oluwaseyi0:
Do they want to bring them to the level of banks?

main question is how are the BDC getting dollars?

The CBN has the full answer and yet does nothing.
That should tell you something.

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by ivolt: 3:20pm On Feb 24

tonicyril:
Sentiment apart, please someone should enlighten me.
Imagine a bank ceo collecting dollars from central bank, refused to use it judicially but sell it to the BDC operators for higher gains and later he will be building university in marina island..

Sentiments apart, the dollars aren't free.
The CBN needs the banks and the banks make money through the process.

The BDC and all regulated entities buy dollars from the bank.

You might ask why the CBN does not sell the dollar directly to the buyers
but the CBN is not a commercial bank and if it decides to be one, the
traders currently buying from banks will still be the one buying from CBN.

As to bank CEO selling to the BDC, there is no law against that,
banks sell to students, travellers, importers and others at similar rate.
It is not criminal to sell to BDC.

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by tonicyril: 3:57pm On Feb 24

ivolt:

Sentiments apart, the dollars aren't free.
The CBN needs the banks and the banks make money through the process.

The BDC and all regulated entities buy dollars from the bank.

You might ask why the CBN does not sell the dollar directly to the buyers
but the CBN is not a commercial bank and if it decides to be one, the
traders currently buying from banks will still be the one buying from CBN.

As to bank CEO selling to the BDC, there is no law against that,
banks sell to students, travellers, importers and others at similar rate.
It is not criminal to sell to BDC.

Well, this is some sense from another angle sha and it is also rooted,

Unlike one slowpoke who was already play a tribal card with my comment

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Growing(m): 4:39pm On Feb 24

What I don't understand is how they will arrest BDC operators on one hand and then invite them to do business with requirements on the other hand.

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by PHAYOL81: 5:43pm On Feb 24

I guess the policy will reduce the number of BDC quite alright but we still need strict control of bank domiciliary transaction to keep the forex problems at the minimum. The participation of the banking sector in this decay is immeasurable.

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by commoditiesnig: 6:07pm On Feb 24

Good one.. More sanity in the financial sector

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Cmeo(m): 8:02pm On Feb 24

Good. I will advise every sector in Nigeria should brace up for serious regulations because we are already running a capitalist economy which requires strong regulation to have a balanced economy

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by VeeVeeMyLuv(m): 8:12pm On Feb 24

chidiokay:

We don't need BDC in real sense, BuH sustaining the BDC is the only way not to unplug the North

You are brutally humourous grin

But should it be their birthright?

I mean must it be their birthright?

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by VeeVeeMyLuv(m): 8:23pm On Feb 24

Biodun556:

Mention advance economy, even South Africa has strict rules on forex

Na yeye country countries wey resemble Nigeria him go dey mention

Visionless Leaders with diminutive intellect.

1 Like 1 Share

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by chidiokay: 9:55pm On Feb 24

VeeVeeMyLuv:

You are brutally humourous

But should it be their birthright?

I mean must it be their birthright?

When you are accustom to something for too long you start feeling its your birthright, cheesy

if you pick something and no one challenges you or drags it with you ... it becomes your own

1 Like

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Konquest: 2:25am On Feb 25

nlfpmod:

https://punchng.com/just-in-cbn-may-increase-bdcs-share-capital-to-n2bn/

The Central Bank of Nigeria is considering increasing the share capital of Bureau De Change operators to N2bn and N500m for Tier 1 and Tier 2 licences.

The currency operators were previously charged N35m for a general licence.

This was contained in the draft paper of a “Revised Regulatory And Supervisory Guidelines For Bureau De Change Operations In Nigeria” published by the apex bank on Friday.

The new guidelines contain several new changes to the guidelines for BDC operations in the country and if endorsed will be effective at a date decided by the CBN.

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by MrBroke(m): 12:42pm On Feb 25

2 Billy naira is much o but na politicians business so na less for them. Some might merge together and continue their venture.

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by CapitalBank: 1:11pm On Feb 25

HBB1:
Too small, should be higher.

Exactly… something they will meet up and sub let to others and gain more from their license.

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by khattab02: 2:25pm On Feb 25

We just hope una know weytin una dey do.

Make e work, this fire brigade approach shows U and Mr president were neva ready for the Renewed hope projects.

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by Ilekokonit: 12:12am On Feb 26

The corrupt confused government have finally realised that it is futile to shoot at the BDC operators in a free market as a way of forcing them to stop speculating on the Naira.

They originally thought that bullets could be used to stabilize the Naira

Re: CBN To Raise BDC’s Share Capital To ₦2 Billion by AlphaSoul: 12:45pm On Feb 27

nlfpmod:

“Under Tier 1, operators are expected to have N2bn as minimum share capital while also depositing a Mandatory Caution Deposit of N200m.

“The application and licence fee is also N1 million and N5 million respectively.

“Under Tier 2, operators are expected to have N500 million as minimum share capital while depositing a Mandatory Caution Deposit of N50 million. The application and licence fee are also N250,000 and N2 million respectively.”

The apex bank also stated that the prescribed minimum capital of BDCs and any subsequent capital injection shall be subject to verification by the CBN.

https://punchng.com/just-in-cbn-may-increase-bdcs-share-capital-to-n2bn/

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