…The new guideline also set out rules for sale of foreign currencies by BDCs and divided BDC licence into two categories
SAT, FEB 24 2024-theGBJournal| The Central Bank of Nigeria (CBN) has set N2 billion as new Minimum capital requirement for Bureau de Change (BDC).
The new requirement was announced by the CBN through its Revised Regulatory and Supervisory Guidlines for Bureau De Change Operations in Nigeria published in Friday in whichj it warned that no person shall carry on the business of BDC in Nigeria except with the prior authorization of the CBN.
A BDC is a company licensed by the CBN to carry on only retail foreign exchange
business in Nigeria.
The new guideline also set out rules for sale of foreign currencies by BDCs and divided BDC licence into two categories-Tier 1 BDC, authorized to operate on a national basis, and can open branches and may appoint franchisees, subject to approval of the CBN.
”A Tier 1 BDC (which is the franchisor) shall exercise supervisory oversight over its franchisees. All franchisees shall adopt their franchisor’s name, branding, technology platform and rendition requirements,” the CBN said.
The Tier 2 BDC is authorized to operate only in one state or the FCT. It may have up to three locations – a head office and two branches, subject to approval of the CBN. It is not permitted to appoint franchisees.
The CBN set the TIER 2 BDC Minimum capital requirement at N500,000 with a mandatory caution deposit of 50,000 as againt N200,000 set for the TIER 1 BDCs.
According to the CBN, ”The prescribed minimum capital of BDCs and any subsequent capital injection shall be subject to verification by the CBN.
BDC licences shall be renewable annually subject to compliance with laws and regulations applicable to BDCs and the payment of the non-refundable annual licence renewal fee as stipulated in 7.0 ‘i’ above. However, annual licence renewal fee is not payable in the year of licence, and each BDC shall maintain a mandatory caution deposit (as stipulated) with the CBN.
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