The Central Bank of Nigeria (CBN) has clarified the tier-based classification of Bureau De Change (BDCs), stating that the new guidelines followed an earlier exposure draft circulated for public input earlier this year, which the Bank has now incorporated and posted on its website on Wednesday, May 22, 2024
According to the Acting Director of the Corporate Communications Department, Mrs Hakama Sidi Ali, who spoke with reporters in Abuja on Thursday, May 23, 2024, the new guidelines include two tiers of licencing.
She reiterated the Bank’s invitation to interested parties to apply for BDC licences, provided they meet the new guidelines, effective June 3, 2024, while existing BDCs will have a six-month grace period to meet the new requirements.
Furthermore, Sidi Ali said the CBN remained committed to repositioning the Bureau De Change (BDC) sub-sector to play its envisioned role in the foreign exchange market in Nigeria.
On Wednesday, the apex bank released draft operational guidelines for Bureau de Change (BDC) operators in Nigeria. This was contained in a circular signed by Haruna Mustafa, Director, Financial Policy and Regulation department of the apex bank.
Under the latest arrangement, there are new licensing requirements. All existing BDCs have been directed to re-apply for a new license according to any of the tiers or license category of their choice as provided in the guidelines.
More so, BDCs are to meet the minimum capital requirements for the license category applied for within six months from the effective date of the guidelines. Accordingly, applicants for new BDC licenses are required to meet the conditions for the grant of license in accordance with the tier or category of BDC chosen.
The circular further noted that receipt and processing of applications for license shall commence from the effective date of the guidelines. All applications are expected to be submitted electronically. The CBN added that the current guidelines supersedes the revised operational guidelines for BDCs in Nigeria issued in November 2015 and all circulars and directives related to it.