BDC operators to meet with CBN on N35m deposit fund

Following the decision of the Central Bank of Nigeria to stop the sales of forex to Bureau De Change operators in the country, Association of BDC Operators has said it will meet with the apex bank on how their N35 million deposit will be refunded.

Chairman of the Association, Yusuf Ibrahim said his members would meet with the CBN on the need to seek for refund of their N35 million deposits. “The issue of N35 million deposits has to be revisited. Also, we need to know if this policy is temporary or permanent. We are saying this because the licence from CBN is now useless. It does not favour us one bit. So, they should return this money so that we can put it back into business and make profit,” Ibrahim said.

However another operator who spoke with National Daily, Yakubu, in as much as he would like the refund of the deposit, the fear of losing the protection of the government is a factor that must be considered. “We rarely have problem with EFCC and other law enforcement agencies because our activities are sanctioned by CBN. Even if CBN says come and collect your deposit, lots will not collect it because of the cover I get from CBN,” he said.

Speaking further, Yakubu said the new directive would have adverse effects on the government to shore up value of the naira. “I believe that dollars will flood the market because though CBN has lifted the ban on deposit of foreign currencies in banks, wealthy people will not utilise this.

“So, they will be forced to sell them to us, and this will help to sustain our businesses. In fact, if all people hoarding dollars bring them out, the problem will now be how to get enough naira to cover it,” he said.

He said the policy was likely to crash the foreign exchange market which would result in panic selling since wealthy people could not deposit in the bank. He said that the effect of the new policy would be felt in the market towards the weekend.