The Central Bank of Nigeria (CBN) has mandated all Bureau de Change (BDC) operators in the country to reapply for new operational licences by June 3, 2024, in order to continue participating in the forex market.
The new requirements set a capital threshold of N2 billion for tier 1 operators and N500 million for tier 2 operators.
The revised Regulatory and Supervisory Guidelines for Bureau de Change (BDC) Operations in Nigeria, which announced the new minimum capital requirements, were introduced in February. A circular issued on Wednesday, signed by Haruna Mustafa, CBN Director of Financial Policy and Regulation Department, provided the latest directives.
The circular explained that the guidelines are part of reforms aimed at repositioning the BDC sub-sector to effectively contribute to Nigeria’s foreign exchange market. These guidelines introduce new licensing requirements and categories for BDCs and revise permissible activities, financial requirements, corporate governance standards, and AML/CFT/CPF provisions.
The circular stated, “All existing BDCs shall reapply for a new licence according to any of the Tiers or licence categories of their choice as provided in the Guidelines. They must meet the minimum capital requirements for the licence category applied for within six months from the effective date of the Guidelines.”
Additionally, new BDC licence applicants must fulfill the conditions for obtaining a licence according to their chosen tier or category as stipulated in the Guidelines. BDC operators are also required to submit the names of promoters, the name of the proposed BDC, the email address of the promoter, and the phone number of the promoter.
