The Central Bank of Nigeria (CBN) has announced that all existing Bureau de Change (BDC) operators need to reapply for new licenses under the latest guidelines.
These new rules, which kick in on June 3, 2024, require BDCs to meet new minimum capital requirements within six months.
BDC operators aren’t happy with the new guidelines. Aminu Gwadebe, President of the Association of Bureau de Change Operators of Nigeria (ABCON), expressed his frustration, saying the new capital requirements are excessive and don’t align with global standards.
He pointed out that the capitalisation requirements in the UK and Kenya are much lower, arguing that BDCs simply buy and sell currencies, they’re not banks.
Gwadebe also mentioned that the timeline given by the CBN to comply with these new rules is too short. This sentiment is echoed by many operators who feel that the changes are being implemented too quickly.
The CBN, however, says the new guidelines are meant to streamline BDC operations and improve financial access in Nigeria.
They released a draft of these guidelines back in February 2024 for feedback, and now they’re putting them into action.
The new setup includes two tiers of BDCs: Tier-1 operators, who can operate nationwide with a minimum capital base of ₦2 billion, and Tier-2 operators, who are limited to one state or the FCT with a minimum capital base of ₦500 million.
All BDC transactions over $500 must now be done digitally, and the CBN expects all operators to follow strict corporate governance and anti-money laundering regulations.
