June 25, 2024

The Central Bank of Nigeria (CBN) has announced revised guidelines for the licensing of Bureau De Changes (BDCs), introducing a tier-based classification system and removing several financial requirements to streamline operations and enhance financial accessibility.

According to Mrs. Sidi Ali, Acting Director of the Corporate Communications Department, the new guidelines, which followed public input from an earlier exposure draft, were posted on the CBN’s website on Wednesday. Speaking to reporters on Thursday, Ali detailed the two-tier licensing system now in place.

In the updated regulations, the mandatory caution deposit of N200 million for tier-1 BDC licence holders and N50 million for tier-2 licence holders has been removed. Additionally, the non-refundable annual licence renewal fees, previously set at N5 million for tier-1 and N1 million for tier-2 BDCs, have been waived.

These changes aim to simplify the regulatory framework for BDC operations in Nigeria and make it easier for entities to participate in the foreign exchange market. Ali emphasized that these adjustments are part of the CBN’s broader effort to reposition the BDC sub-sector to better serve its intended role.

The CBN encourages interested parties to apply for BDC licenses under the new guidelines, which will take effect on June 3, 2024. Existing BDCs will have a six-month grace period to comply with the new requirements.

This regulatory update is part of the CBN’s ongoing consultations with stakeholders, aimed at improving the operational efficiency of BDCs and ensuring they contribute effectively to Nigeria’s financial system.

For further details and to review the complete set of revised guidelines, interested parties are advised to visit the CBN’s official website.

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