The Central Bank of Nigeria (CBN) has provided clarity on the tier-based classification of Bureau De Changes (BDCs), stating that the new guidelines were developed based on feedback from stakeholders and an exposure draft circulated earlier this year.
The updated guidelines, which incorporate public input, have been posted on the CBN’s website.
Acting Director of the Corporate Communications Department, Mrs. Sidi Ali, explained to reporters in Abuja on Thursday that the new guidelines introduce two tiers of licencing for BDCs.
This follows consultations with stakeholders and aims to streamline BDC operations while enhancing financial accessibility.
Notably, the CBN has made significant adjustments to the regulatory requirements.
The mandatory caution deposit of N200 million for tier-1 BDC licence holders has been removed, along with the N50 million deposit for tier-2 licence holders.
Additionally, the non-refundable annual licence renewal fee has been withdrawn. Previously, tier-1 BDCs paid N5 million for renewal, while tier-2 BDCs paid N1 million.
These changes are intended to facilitate compliance and reduce financial burdens on BDC operators.
The CBN encourages BDCs to familiarise themselves with the revised guidelines and ensure compliance.
Interested parties are invited to apply for BDC licences, provided they meet the new requirements, effective June 3, 2024.
Existing BDCs will be granted a six-month grace period to meet the new criteria.
Ali reaffirmed the CBN’s commitment to repositioning the BDC sub-sector to fulfil its intended role in the Nigerian foreign exchange market.
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