The Central Bank of Nigeria (CBN) has approved a new guidelines for operation of Bureau De Change (BDCs) and directed all BDCs operators (BDCs) to reapply for new licences by June 3, 2024 in order to continue to operate in the foreign exchange market in the country.
According to the CBN new guideline, tier one BDCs expected to pay minimum capital requirements of N2 billion, while tier 2 BDC operators will pay minimum capital requirements of N500 million.
It said the application for BDC licence shall be processed in two stages, namely: Approval-in Principle (AIP) and final licence.
With the new development in the BDCs foreign exchange sub sector, the CBN has scrapped the previous mandatory caution deposit of N200 million for tier-1 BDC licenses and N50 million for tier-2 licenses.
The apex bank also abolished the previously imposed non-refundable annual license renewal fees of N5 million for tier-1 and N1 million for tier-2 BDCs.
The apex bank had in February this year introduced a new minimum capital for the BDCs as published in the revised Regulatory and Supervisory Guidelines for Bureau de Change (BDC) Operations in Nigeria.
But the Central Bank of Nigeria (CBN) has clarified the tier-based category of Bureau De Change (BDCs), stating that the new guidelines followed an earlier exposure draft circulated for public input earlier this year, which the Bank has now incorporated and posted on its website on May 22, 2024
According to the Acting Director of the Corporate Communications Department, Mrs Hakama Sidi Ali, who spoke with reporters on Thursday the new guidelines include two tiers of licencing.
