The Central Bank of Nigeria (CBN) has mandated that all existing Bureau De Change (BDC) operators re-apply for licenses. This directive was issued in a circular by Haruna Mustafa, Director of the Financial Policy and Regulation Department, on Wednesday. BDCs must meet the capital requirements for their license category within six months.

The CBN outlined that all existing BDCs and promoters of new BDCs must re-apply for a new license according to their chosen tier or license category as specified in the updated guidelines. Significant changes to these guidelines include:

- Removal of Mandatory Caution Deposits: The mandatory caution deposit of N200 million for tier-1 license holders and N50 million for tier-2 license holders has been removed.

- Elimination of Annual License Renewal Fees: The non-refundable annual license renewal fee of N5 million for tier-1 BDCs and N1 million for tier-2 BDCs has been withdrawn.

These changes are part of broader reforms aimed at repositioning the BDCs to fulfill their intended role in Nigeria's foreign exchange market.

The CBN had issued Draft Operational Guidelines for BDC Operations in Nigeria in February 2024, inviting stakeholder comments and inputs.