The Central Bank of Nigeria (CBN) has announced new requirements for Bureau de Change (BDC) operators.

These changes, it said, aim to improve the way BDCs operate in Nigeria’s foreign exchange market.

 

It said All BDCs operating in Nigeria must reapply for new licenses based on the provided Guidelines.

 

They must also choose a Tier and meet the specified capital requirements within six months from the guidelines’ effective date of June 3, 2024.

 

There are now two levels or “tiers,” of BDC licenses. Tier 1 BDCs need to have a minimum capital of N2 billion while Tier 2 BDCs need N500 million. All BDCs must have this minimum amount of money in their business to qualify for a license.

 

The CBN has also made changes to the application process for new BDC licenses.

 

Applicants will need to provide more information, including the names of the people starting (promoters) the business and their contact details.

 

The CBN has made the application process more affordable by removing some fees. Previously, BDCs had to pay a deposit depending on their tier, but this is no longer required. An annual renewal fee has also been scrapped.

 

The CBN emphasised that these changes were designed to strengthen the BDC sector and ensure it plays a more positive role in Nigeria’s foreign exchange market.

 

Credit: thenationonlineng.net