In response to the ongoing challenges in the foreign exchange market, the Central Bank of Nigeria (CBN) is considering implementing new measures, including the potential cessation of street trading, for Bureau De Change (BDC) Operators across the country. This announcement was made on Friday as part of the CBN’s draft Revised Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria.
Under the proposed guidelines, the CBN plans to establish minimum capital requirements for Tier 1 and Tier 2 BDC licenses at ₦2 billion and ₦500 million respectively. This represents a significant increase from the previous ₦35 million minimum capital requirement for general licenses.
According to the draft guidelines, Tier 1 BDCs will have national authorization, allowing them to operate nationwide, establish branches, and potentially appoint franchisees with CBN approval. Additionally, Tier 1 BDCs will exercise supervisory oversight over their franchisees, who will adopt the franchisor’s name, branding, technology platform, and operational standards.
On the other hand, Tier 2 BDCs will be limited to operating within a single state or the Federal Capital Territory (FCT). They may have up to three locations, including a head office and two branches, subject to CBN approval. Tier 2 BDCs will not be permitted to appoint franchisees.
These proposed changes come amidst recent efforts by the Economic and Financial Crimes Commission (EFCC) to crack down on illegal BDCs in Abuja, Lagos, Kano, and Ibadan, aimed at stabilizing the Naira against the US dollar.
At the close of trading on Friday, the Naira experienced further depreciation, reaching ₦1,665.50 per US dollar on the FMDQ market, compared to ₦1,571.31 on Thursday. In the parallel market, the Naira traded between ₦1,750 and ₦1,800 per USD, up from ₦1,680.00 the previous day.
