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

This represents a significant increase from the previous requirement of N35 million for a general BDC license, as outlined in a new draft regulatory guideline document published by the CBN.

Under the proposed two-tiered licensing structure:

  • Tier 1 BDCs authorized to operate nationally may open branches and appoint franchisees, subject to CBN approval. Tier 1 BDCs must exercise oversight of franchises using common branding and technology.
  • Tier 2 BDCs may only operate in one state, with up to 3 locations. Tier 2 licenses do not allow franchisees.

The guidelines also outline the following revised capital requirements:

  • Tier 1 – Minimum capital of N2 billion and mandatory caution deposit of N200 million. License fees of N1 million and N5 million.
  • Tier 2 – Minimum capital of N500 million and mandatory caution deposit of N50 million. License fees of N250,000 and N2 million.

The CBN stated prescribed BDC capital and any subsequent injections will be subject to verification.

The updated licensing guidelines will take effect on a date determined by the CBN, if formally approved.

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