The Central Bank of Nigeria has announced the approval of final operating licences for eighty two Bureaux De Change following the completion of compliance checks under the 2024 Regulatory and Supervisory Guidelines for BDC Operations. This development represents a major step in the effort to strengthen transparency and establish a well regulated retail foreign exchange market in Nigeria.
This approval was issued in line with the Bank and Other Financial Institutions Act of 2020. According to the CBN, only the BDCs listed on its official website are permitted to operate from the effective date of licence issuance.
Overview of Newly Approved Operators
The new approvals fall under two categories.
Tier One
Dula Global Bureau De Change
Trurate Global Bureau De Change
Tier Two
Eighty operators including Abbufx Bureau De Change, Arctangent Swift Bureau De Change, Corporate Exchange Bureau De Change, Greengate Bureau De Change, Hazon Capital Bureau De Change, Simtex Bureau De Change, Victory Ahead Bureau De Change and others. The full list is available on the Central Bank website for public verification
Legal consequences for unlicensed BDC operations
The CBN reiterated that operating a bureau de change without the required approval is an offence under the Banks and Other Financial Institutions Act. It warned that offenders would be sanctioned. “Operating a Bureau De Change business without a valid licence is a punishable offence under Section 57(1) of BOFIA 2020,” the statement read.
The bank urged the public to be cautious when conducting forex transactions, saying the clarification was necessary to prevent members of the public from falling victim to illegal operators. The statement concluded that members of the public “are hereby advised to note and be guided accordingly.”
What You Should Know
The confirmation of eighty two licences comes at a time when the CBN is intensifying its effort to bring stronger transparency, structure and discipline into the foreign exchange market. This follows a series of reforms that began earlier in the year.
In May 2024, the Central Bank released the approved operational guidelines for Bureau De Change operators and directed all operators across the country to reapply for licensing on the new regulatory framework. Operators were given six months to meet the updated requirements.
Under the new regulatory structure, Tier One Bureau De Change operators are required to maintain a minimum capital base of N 2billion, while Tier Two operators must maintain a minimum capital base of N 500 million.
The application fee for Tier One is N 1 million while that for Tier Two is N 250,000. The licence fee for Tier One is N 5mllion while that for Tier Two is N 2million.
The guidelines allow Tier One Bureau De Change operators to operate in all thirty six states and the Federal Capital Territory and also expand through approved franchise structures.
The new framework also lists several prohibited activities for Bureau De Change operators. These include dealing in futures, options and other derivative products, conducting outward international transfers, receiving inbound international transfers, engaging in crypto related transactions, and participating in any activity outside the approved FX retail functions.
