The Central Bank of Nigeria (CBN) has introduced new guidelines to regulate Bureau de Change (BDC) operators in the country.
The guidelines, effective from June 3, 2024, stipulate that Tier-1 BDCs must have a minimum capital base of N2 billion, while Tier-2 must have N500 million.
The CBN has removed the mandatory N200 million caution deposit for Tier-1 BDCs and waived the N50 million requirement for Tier-2.
All existing BDCs are required to reapply for licenses within six months and meet the new minimum capital requirements. The CBN has banned street trading, international outward transfers, financing of political activities, dealing in precious metals, crypto assets, or virtual assets for BDCs.
Transactions above $500 must be conducted through digital channels.
The CBN issued these guidelines to reform the BDC sector and enhance its role in the foreign exchange market in Nigeria, following stakeholder consultations and in accordance with the Banks and Other Financial Institutions Act (BOFIA) 2020.
