The Central Bank of Nigeria (CBN) has directed all Bureau de Change operators (BDCs) in the country to reapply for new operational licences by June 3, 2024 in order to continue to operate in the forex market.

The BDCs are also to meet the new deadline of N2billion for tier 1 and N500million for tier 2 operators.

LEADERSHIP reports that a new minimum capital for the BDCs had been announced in the revised Regulatory and Supervisory Guidelines for Bureau de Change (BDC) Operations in Nigeria earlier in February this year.

However, a circular issued on Wednesday and signed by CBN Director, Financial Policy and Regulation Department, Haruna Mustafa, had given the latest directives.

According to the circular, the guidelines were part of reforms to re-position the BDC sub-sector to play its envisioned role in the foreign exchange market in Nigeria. The guidelines, amongst others, introduced new licensing requirements and categories of BDCs as well as revised the permissible activities, financial requirements, corporate governance requirements and AML/CFT/CPF provisions for BDCs.

Consequently, it stated that, "all existing BDCs shall re-apply for a new license according to any of the Tiers or license category of their choice as provided in the Guidelines. Meet the minimum capital requirements for the license category applied for within six months from the effective date of the Guidelines."

Also, applicants for new BDC licences are required to meet the conditions for the grant of licence in accordance with the Tier or category of BDC chosen as stipulated in the Guidelines. BDC operators are also expected to submit the names of promoter, name of the proposed BDC, E-mail address of the promoter and phone number of the promoter.