The Central Bank of Nigeria (CBN) is preparing to issue over 100 additional Bureau de Change (BDC) licenses as part of its ongoing effort to strengthen and sanitise the foreign exchange market, LEADERSHIP has learnt.
Brandspur Banking News Desk reports that the new round of licensing follows the first batch of 82 BDCs that met the CBN’s recapitalisation requirements. In May 2024, the apex bank increased the minimum capital for BDC operators to N2 billion for Tier 1 licenses and N500 million for Tier 2, up from the previous N35 million threshold. Tier 1 operators can now operate nationwide, while Tier 2 are limited to a single state.
Findings show that out of more than 2,000 registered BDCs, only 82 complied with the recapitalisation rules, prompting the first list of licensed operators. Over 100 additional BDCs are expected to be cleared for licensing following a nationwide capital verification exercise. Aminu Gwadabe, President of the Association of Bureau de Change Operators in Nigeria (ABCON), commended the CBN for conducting thorough assessments and indicated that the second batch of licensed BDCs may be released by the end of next month.
“The CBN is working seriously to ensure more BDCs meet the requirements and join the formal market. The capital verification has been completed nationwide, and we expect the results to be released soon,” Gwadabe said.
The move comes after the CBN allowed licensed BDCs to access foreign exchange from the Nigerian Foreign Exchange Market (NFEM) through authorised dealer banks. Operators can now purchase foreign currency at prevailing market rates, subject to KYC compliance and a weekly limit of USD150,000 per BDC. All unutilised balances must be returned to the market within 24 hours to prevent accumulation.
The CBN explained that recapitalisation and tighter regulation of BDCs are aimed at improving liquidity, restoring market confidence, and curbing distortions in the retail foreign exchange segment caused by weak capitalisation and poor governance. Licensed BDCs are also required to submit timely and accurate returns electronically in line with regulatory directives.
