Nigeria CBN Implements Stricter Regulations: BDC Operators Must Reapply for Licences

The Central Bank of Nigeria (CBN) mandates existing Bureau de Change operators to reapply for operational licenses, setting minimum capital requirements. Tier 1 BDCs need N2 billion, Tier 2 N500 million. Non-refundable fees apply. Effective from June 3, 2024, the guidelines aim to streamline operations and enhance regulatory oversight in the foreign exchange market.

The Central Bank of Nigeria (CBN) has announced a directive for all existing Bureau de Change operators (BDCs) to reapply for new operational licenses. Released in a document titled ‘Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria,’ the CBN mandates BDCs to choose from various license categories and meet minimum capital requirements within six months, starting June 3.

Tier 1 BDC operators must have a minimum capital of N2 billion, while Tier 2 operators require N500 million. Application fees include a non-refundable N1 million for Tier 1 and N250,000 for Tier 2, with additional non-refundable license fees of N5 million and N2 million, respectively.

The guidelines, effective from June 3, 2024, replace previous operational guidelines issued in November 2015, aiming to streamline BDC operations and enhance regulatory oversight in the foreign exchange market.