By Sabiu Abdullahi
The Central Bank of Nigeria (CBN) is contemplating raising the minimum capital requirements for Bureau De Change (BDC) operators, with proposed figures set at N2 billion for Tier 1 licences and N500 million for Tier 2 licences.
This potential adjustment marks a substantial increase from the previous requirement of N35 million for a general licence.
The proposed updates encompass a series of modifications to the regulatory framework governing BDC operations across the nation.
Once ratified, these revised guidelines will be implemented on a date determined by the CBN.
Under the proposed Tier 1 classification, operators must maintain a minimum share capital of N2 billion and furnish a mandatory caution deposit of N200 million.
Furthermore, the application fee is set at N1 million, with an additional licence fee of N5 million.
For Tier 2 operators, the proposed minimum share capital stands at N500 million, accompanied by a mandatory caution deposit of N50 million.
The application fee for Tier 2 operators is proposed at N250,000, while the licence fee amounts to N2 million.
The CBN stated the importance of these revised minimum capital requirements in enhancing the stability and integrity of the BDC sector.
These measures are intended to strengthen the operational capacity of BDC operators, promote transparency, and mitigate risks associated with currency exchange activities.
This prospective adjustment underscores the CBN’s commitment to fostering a robust regulatory environment conducive to the sustainable growth and development of Nigeria’s financial sector.