The Central Bank of Nigeria (CBN) has announced new regulatory measures aimed at increasing the financial requirements for Bureau de Change (BDC) operators across the nation. These new rules are designed to strengthen the sector and ensure better compliance with financial regulations, including anti-money laundering and anti-terrorism financing protocols.
According to the proposed guidelines, BDC operators applying for a Tier 1 license will now be required to maintain a minimum share capital of N2 billion, along with an additional N200 million mandatory caution deposit. This is a significant increase from the previous capital requirements.
For those applying for a Tier 2 license, the minimum share capital requirement has been set at N500 million, and operators must also provide a N50 million mandatory caution deposit.
These revisions mark a major shift from the previous licensing framework, which set the capital requirement for a general BDC license at just N35 million. The CBN’s decision is part of its Revised Regulatory and Supervisory Guidelines for Bureau De Change Operations, which is currently in draft form.
Under the new structure, Tier 1 operators, who are authorized to operate on a national scale and open branches, must pay an application fee of N1 million and a license fee of N5 million. They are also permitted to appoint franchisees, with approval from the CBN, and to oversee these franchisees.
On the other hand, Tier 2 operators, which are limited to conducting business within one state or the Federal Capital Territory (FCT), are required to pay an application fee of N250,000 and a license fee of N2 million. These operators are allowed to operate up to three locations, including a main office and two branches, but they are not permitted to appoint franchisees.
The CBN has emphasized that the minimum capital requirements for BDCs, along with any additional capital investments, will need to be approved and validated by the central bank.
Additionally, BDCs will now be required to renew their licenses annually, subject to adherence to the applicable laws and payment of an annual license renewal fee. Tier 1 operators will pay N5 million for renewal, while Tier 2 operators will pay N1 million. The updated guidelines will become effective once the CBN announces the official start date.
