The Central Bank of Nigeria (CBN) is considering raising the minimum capital requirements for Bureau De Change (BDC) operators to N2 billion for Tier 1 licenses and N500 million for Tier 2 licenses.

It was previously N35 million for a general license.

The updated regulations encompass numerous modifications to the guidelines governing BDC activities within the nation. Once approved, these updated guidelines will come into effect on a date determined by the CBN.

Tier 1 operators must maintain a minimum share capital of N2 billion and also submit a Mandatory Caution Deposit of N200 million.

The fee for application is N1 million, while the license fee amounts to N5 million.

In Tier 2, operators are required to possess a minimum share capital of N500 million and maintain a Mandatory Caution Deposit of N50 million.

The application fee is N250,000, while the license fee amounts to N2 million.

The central bank also mentioned that the specified minimum capital requirement for BDCs, along with any additional capital infusion, will need to be confirmed by the CBN.

This is a welcome development