CBN directs BDC operators to apply for new licences

The Central Bank of Nigeria (CBN) has directed all existing Bureau De Change (BDC) operators to re-apply for new licences in their preferred category. In February, CBN released a ‘Draft Revised Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria’. However, on Wednesday, following consultation, CBN made changes to the guidelines and also directed existing BDCs to reapply for a new licence.

This was announced on Wednesday in a circular issued by the apex bank which was signed by the Director, Financial Policy and Regulation Department, Haruna Mustafa.

The BDCs were also required to meet the capital requirements for their licence category within six months. One of the changes in the guidelines is the removal of the mandatory caution deposit of N200 million for tier-1 licence holders.

Also, N50 million for tier-2 licence holders was removed by the apex bank. Similarly, the CBN withdrew the non-refundable annual licence renewal fee of N5 million and N1 million for tier-1 and tier-2 BDCs, respectively. The apex bank also said the guidelines will take effect from June 3, 2024.