Expectations of improved foreign exchange liquidity have strengthened across Nigeria’s financial markets following the decision of the Central Bank of Nigeria (CBN) to grant 82 recapitalised Bureau De Change (BDC) operators access to up to $150,000 weekly from the Nigerian Foreign Exchange Market (NFEM).
The move, which industry stakeholders describe as both strategic and timely, is aimed at easing dollar scarcity in the retail segment of the market, narrowing the gap between official and parallel exchange rates, and reinforcing confidence in the naira.
Our correspondent reports that under revised guidelines issued pursuant to the Banks and Other Financial Institutions Act (BOFIA) 2020, existing BDCs were required to recapitalise and reapply for licences under new categories.
Only 82 operators met the new requirements and were granted final approval. Tier-1 BDCs were mandated to raise a minimum capital base of N2 billion and are permitted to operate nationwide, establish branches across states, and appoint franchisees subject to regulatory approval.
Tier-2 BDCs, with a minimum capital requirement of N500 million, are limited to operating within a single state or the Federal Capital Territory and may establish up to five branches but cannot appoint franchisees.
