Stories By Akin Akinremi
The on-going recertification of the BDC operators continued last week as CBN registered 74 more BDC operators to continue operation in the country.
The admission of these 74 BDC operators brings the total number of BDC’s that have so far met the requirement of CBN’s N35 million to 2,660 as at May 2015.
This is also the seventh time the CBN would be updating the list of BDCs that successfully scaled through the recaptalisation hurdle after the July 31, 2014 deadline given to the operators to beef up their capital base.
The apex bank had on August 15, last year announced that a total of 2,442 BDC’s met the new capital requirement as at July 31, 2014. The CBN added 51 more BDCs to the list on September 5, 2014.
On November 14 last year, the CBN also added 15 more BDC’s to the list and later added 11 more companies on November 28, 2014.
The CBN on January 9, 2015 informed the public that 21 more companies had been added to the list, thereby increasing the total number of BDC’s that have so far met the new capital requirements to 2,523 as at that date.
On February 6, 2015, 28 more BDC’s were recertified to continue operations. However, for the sixth time, the CBN also approved 14 new BDC’s on February 27, 2015. Before the increase in minimum capital requirements from N10 million to N35 million, a total of 3,208 BDCs were officially registered with the CBN.
Analysts who expressed their views on the issue said with the way CBN is going, it will still be the same old story as the new list may not be different from the old list at the end of the day.
The CBN had recently increased the minimum capital requirement for BDC operation in Nigeria to flush out the unserious ones in that sub-sector and correct some grave inefficiencies and sharp practices going on in the industry.
The new guidelines further stipulated that a would-be BDC operator must make a mandatory cautionary deposit of N35 million, which is expected to be deposited in a non-interest yielding account in the CBN upon the grant of an approval in principle.
With the latest addition of 74 more BDCs, the operators said the more, the merrier.