The Central Bank of Nigeria has withdrawn all Bureau de Change licences as it orders forex traders to reapply for fresh permits.
The operators are expected to apply for either of the two categories- ‘Tier one’ or ‘Tier two’ with a minimum capital requirement of N2bn and N500m respectively.
According to the Central Bank, BDCs have six months from the date of the release of the guidelines to apply for the new license.
The bank revealed this in the final ‘Regulatory and Supervisory Guidelines For Bureau de Change Operations In Nigeria. ‘
The apex bank had released a draft guideline in February 2024 for stakeholder inputs.
“Following the conclusion of the stakeholder consultations and in exercise of the powers conferred on it by Section 56 of the Banks and Other Financial Institutions Act (BOFIA) 2020, the CBN hereby issues the attached Regulatory and Supervisory Guidelines for Bureau On Change Operations in Nigeria 2024 for compliance by all operators and promoters of proposed BDCs in Nigeria,” the apex bank said.
The guidline mandate BDCs to “Re-apply for a new license according to any of the Tiers or license category of their choice as provided in the Guidelines.
“Meet the minimum capital requirements for the license category applied for within six months from the effective date of the Guidelines.”
“Applicants for new BDC license are required to meet the conditions for the grant of license in accordance to category of BDC chosen as stipulated in the Guideline.”
The bank said Tier 1 BDC license holders will operate in any state of the federation and the Federal Capital Territory (FCT).