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Why CBN refunds capital deposits, licence fees to BDC applicants

*The Central Bank of Nigeria has urged eligible promoters of Bureaux de Change to submit their applications for refund in writing, following the recent move to stop allocation of foreign exchange to BDC operators in the country

Alexander Davis | ConsumerConnect

In view of the recent discontinuation of Foreign Exchange (Forex) sales to the operators in the country, the Central Bank of Nigeria (CBN) has disclosed that it will start immediate refund of capital deposits to Bureaux de Change (BDC) promoters with pending applications.

ConsumerConnect reports Ibrahim Tukur, Director of Financial Policy and Regulation Department of the Bankers’ Bank, in a statement Thursday, July 29, 2021, said the move is in furtherance of the decision to stop allocation of foreign exchange to BDC operators in the country.

US Dollars

Tukur, therefore, urged eligible promoters of BDCs to forward their application for refund in writing to the Director, Financial Policy and Regulation Department of the CBN.

He stated: “The requests should be accompanied with the following documents:

“Telex copy of the capital deposit of N35 million; account details for the refund, which should be the same as the account from which the capital deposit originated, including the bank name, account name and account number.

“Copy of the bank draft/telex for payment of licensing fee of NI million (if any),” he said.

The apex bank also advised eligible applicants to submit hardcopies of their requests to CBN Head Office, Central in Abuja, or the Annex in Lagos, while urging commercial banks to stop processing payments for their clients.

The CBN Director of Financial Policy and Regulation Department added: “Softcopy of the request in above may be sent in advance of the hard copy to fprdlicensinq@cbn.gov.ng.

“In addition, all Deposit Money Banks are hereby directed to henceforth stop accepting instructions from customers to transfer capital deposit of N35 million to the designated CBN account for the purpose of applying for BDC licences.”

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