The Central Bank of Nigeria has removed the list of approved Bureaux de Change (BDC) operators from its website following a new directive requiring BDCs to re-apply for operational licenses.
Checks by TimesNow.com.ng show that the bank usually displays the list on its website so the public knows authentic currency dealers across Nigeria has been removed.
The development comes as the bank clarified the tier-based classification of BDCs, saying that the new rule followed an earlier circular for public input this year, which it has now incorporated and posted on its site on Wednesday, May 22, 2024.
The bank’s acting director of the corporate communications department, Hakama Sidi Ali, clarified this as he spoke with reporters in Abuja on Thursday, May 23, 2024.
She disclosed that new guidelines include two licensing tiers.
Reports say Sidi Ali repeated CBN’s invitation to interested parties to apply for BDC licenses effective June 3, 2024, while existing operators have six months to renew their licenses after meeting the guidelines.
TimesNow.com.ng earlier reported that the CBN has asked all existing Bureau de Change (BDC) operators in Nigeria to re-apply for new operational guidelines,
The bank stated this on Wednesday, May 22, 2024, in a document titled Regulatory and Supervisory Guidelines for Bureau de Change Operations in Nigeria.
According to the apex bank, all existing BDCs shall re-apply for a new license by any of their chosen tiers or license categories, as provided in the Guidelines.
The apex bank disclosed that BDCs must meet the minimum capital requirements for the license category applied for in six months starting June 3, 2024.
CBN said:
The release said that the minimum capital requirement for tier 1 BDC operators is N2 billion while N500 million is required for tier 2 BDCs.
According to the requirements, the tier BDC operators must pay a non-refundable application fee of N1 million and a non-refundable license fee of N5 million.
The bank expects tier 2 operators to pay a non-refundable application and license fee of N250,000 and N2 million, respectively.
Per the circular, the new guidelines supersede the Revised Operational Guidelines for Bureau De Change in Nigeria issued in November 2015 and all related circulars and directives.
The CBN began selling forex weekly to BDCs in March to ease the liquidity crunch in the foreign exchange market.
The bank sold $10,000 to each BDC at a specific rate, asking them to sell at most 1.5%.
The development follows the crash of the Nigerian currency in the FX market in late April.
The naira emerged as the best-performing currency in April, exchanging for almost N1,000 per dollar before crashing again as a liquidity squeeze set in.
