The Central Bank of Nigeria (CBN) has stated that the 2025 licence renewal cost will be waived with immediate effect, potentially easing the strain on Bureau de Change (BDC) operators. This decision coincides with the current transition to a new regulatory framework for BDCs, as defined in the “Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria, 2024.”
“This is to inform all existing bureaux de change that further to the Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria, 2024, and the ongoing transition to the new BDC regulatory structure, the Central Bank of Nigeria (CBN) has approved the waiver of 2025 licence renewal fee, effective immediately,” stated the circular signed by John Onojah, Acting Director of the Financial Policy and Regulation Department at the CBN.
The circular further advises any BDC operator who has already paid the 2025 renewal fee to apply for a refund to their original payment account.
This move underscores the CBN’s commitment to fostering a more stable, transparent, and efficient foreign exchange market while guiding operators towards compliance with the revised regulatory framework.
Read Also: CBN Launches FX Code to Promote Transparency, Fairness in Nigeria’s Forex Market
In May 2024, the CBN issued new guidelines aimed at streamlining BDC operations in the country. These guidelines introduced significant changes, including:
- Tiered Capital Requirements: A minimum capital base of N2 billion for Tier-1 BDCs and N500 million for Tier-2 BDCs.
- Removal of Caution Deposits: The mandatory caution deposit of N200 million for Tier-1 BDC licenses was eliminated, and the N50 million deposit for Tier-2 licenses was also waived.
- Operational Restrictions: BDCs were prohibited from street trading, engaging in international outward transfers, financing political activities, dealing in gold or other precious metals, and trading in cryptocurrencies or other virtual assets.
- Digital Transactions: BDCs are mandated to channel transactions exceeding USD500 through digital means.
The CBN’s decision to waive the 2025 license renewal fee could be seen as an effort to alleviate some of the financial pressures on BDCs as they navigate these new regulatory hurdles.
It’s important to note that this waiver does not diminish the importance of adhering to the revised guidelines. BDCs are required to reapply for new licenses and meet the specified capital requirements within six months of the guidelines’ effective date (June 3, 2024).
The ongoing reforms within the foreign exchange market are crucial for maintaining macroeconomic stability and ensuring the sustainable growth of the Nigerian economy. While these changes may present challenges for some BDC operators, they are ultimately intended to create a more regulated and transparent market for all stakeholders.
