The Central Bank of Nigeria (CBN) yesterday ordered all existing Bureau De Change (BDCs) operators in the country and promoters of new entrants to reapply for new operating licenses of their choice.
The directive came as the apex bank introduced fresh regulatory and supervisory guidelines for BDC operations, setting a new licensing regime and capital requirement for the sub-sector.
The framework categorised BDCs into Tiers One and Two, adding that while the former may operate in any state of the federation and the Federal Capital Territory (FCT), the latter is permitted to operate only in one state of the federation or the FCT.
The central bank also pegged the minimum capital requirement for a national BDC at N2 billion, and N500 million for a state operator.
In addition, the central bank issued a six-month deadline for the BDCs to meet the minimum capital requirements for the license category applied for from the effective date of the guidelines. The apex bank conveyed the new development in a circular dated May 22, 2024, and signed by CBN Director, Financial Policy and Regulation Department, Haruna Mustafa, which was addressed to all BDCs and stakeholders in the financial services industry.
