Olufemi Adeyemi
The Central Bank of Nigeria (CBN) has just announced that the fee for renewing licenses in 2025 for Bureau De Change (BDC) operators is now waived, effective immediately.
This move is part of the new Regulatory and Supervisory Guidelines for BDC Operations in Nigeria set for 2024, as well as the shift to a revamped BDC regulatory system.
According to a circular from John Onojah, the Acting Director of the Financial Policy and Regulation Department at CBN, any BDC operator who has already paid the 2025 renewal fee should request a refund to the account they used for the payment.
In the circular, the central bank emphasized its commitment to promoting stability, transparency, and efficiency in the foreign exchange market, while also ensuring that operators comply with the updated regulatory framework.
The circular states, ‘’This is to inform all existing bureaux de change that further to the Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria, 2024, and the ongoing transition to the new BDC regulatory structure, the Central Bank of Nigeria (CBN) has approved the waiver of 2025 licence renewal fee, effective immediately.
‘’Any bureau de change that has paid for 2025 licence renewal is hereby advised to apply to the Director, Financial Policy and Regulation Department, Central Bank of Nigeria for refund to its account from which the payment emanated.
‘’The CBN remains committed to fostering stability, transparency, and efficiency in the foreign exchange market while ensuring that operators align with the revised regulatory framework.’’
In May 2024, the CBN rolled out new guidelines to oversee the operations of Bureau de Change (BDC) operators in the country.
According to the latest circular, the central bank has set the minimum capital requirement at N2 billion for Tier-1 BDCs and N500 million for Tier-2 BDCs. They've also eliminated the mandatory caution deposit of N200 million for Tier-1 license holders and waived the N50 million requirement for Tier-2 holders. The CBN stated that these guidelines will be effective starting June 3, 2024.
Existing BDCs are required to reapply for new licenses and must meet the minimum capital requirements for their chosen category within six months from that date. Additionally, the CBN has prohibited BDC operators from street trading, making international outward transfers, funding political activities, trading in gold or other precious metals, and engaging in cryptocurrency or any virtual assets. They also emphasized that BDCs must conduct transactions digitally for amounts exceeding USD500.