 |
CBN Requires BDC Operators to Reapply for Licenses |
The Central Bank of Nigeria (CBN) has issued a directive to all existing Bureau De Change (BDC) operators, requiring them to reapply for licenses. The circular, released by Haruna Mustafa, Director of the Financial Policy and Regulation Department at the CBN, outlines key changes and expectations for the BDC sector.
Here are the essential points from the new guidelines:
1. License Reapplication:
- All existing BDCs and promoters of proposed BDCs must submit applications for a new license.
- Operators can choose from different tiers or license categories as provided in the guidelines.
2. Capital Requirements:
- Tier-1 BDCs: Minimum capital base of N2 billion.
- Tier-2 BDCs: Minimum capital base of N500 million.
3. Guideline Modifications:
- Caution Deposit Removal:
- Previously, tier-1 license holders were required to deposit N200 million (this deposit is now removed).
- Similarly, tier-2 license holders no longer need to deposit N50 million.
- Annual License Renewal Fees:
- The non-refundable annual renewal fee for tier-1 BDCs (previously N5 million) is now waived.
- Tier-2 BDCs no longer pay the annual renewal fee of N1 million.
These reforms aim to strengthen the BDC sub-sector's role in Nigeria's foreign exchange market. Earlier this year, the CBN released the Draft Operational Guidelines for BDC Operations in Nigeria, seeking input from stakeholders. Now, the Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria 2024 have been officially issued for compliance by all BDC operators and promoters.
