The Central Bank of Nigeria has issued FAQs clarifying its current reforms to the bureau de change (BDC) sub-sector, including a new two-tier licensing structure with higher minimum capital requirements and expanded operating models. The FAQs also set out how BDCs can serve retail foreign exchange needs, the application process for new licences, and the status of legacy operators that did not transition to the new regime. Under the reforms, Tier 1 BDCs must meet a minimum capital requirement of NGN 2 billion and may operate nationwide, including through branches and approved franchisees, while Tier 2 BDCs must meet NGN 500 million and may operate within a single state or the Federal Capital Territory with up to five branches, subject to Central Bank of Nigeria approval. Applications are submitted via the Central Bank of Nigeria’s Licensing, Approval and other Requests Portal, and the FAQs list categories that are not eligible to promote a BDC, including banks and other financial institutions, serving staff of regulators and regulated providers, governments and public officers, certain organisations such as NGOs and charities, non-Nigerian natural persons, sanctioned persons, and shareholders in another BDC. For retail transactions, travellers may purchase personal travel allowance of up to USD 4,000 per quarter or business travel allowance of up to USD 5,000 per quarter, with up to 25% payable in cash and at least 75% to a prepaid card; medical expenses up to USD 5,000 and foreign school fees up to USD 10,000 per year may also be sourced via a BDC subject to required documentation. Customers may sell foreign exchange to a BDC without a stated cap, but BDCs must obtain source-of-funds information for transactions above USD 10,000 in line with AML, CFT and counter-proliferation financing requirements. Implementation of the Guidelines commenced on June 3, 2024, with a transition period for existing BDCs originally running to December 3, 2024 and later extended to June 3, 2025. The Central Bank of Nigeria states that any legacy BDC that failed to meet the new requirements as at November 30, 2025 has ceased to be a BDC because its licence no longer exists. It continues to accept licence applications from prospective promoters with no submission deadline, while reserving the right to discontinue BDC licensing at any time.
Central Bank of Nigeria 2025-12-09
Central Bank of Nigeria publishes FAQs on bureau de change reforms confirming tiered capital requirements and lapse of non-compliant legacy licences
The Central Bank of Nigeria clarified reforms to the bureau de change (BDC) sub-sector, introducing a two-tier licensing structure with higher capital requirements. Tier 1 BDCs require NGN 2 billion and can operate nationwide, while Tier 2 BDCs need NGN 500 million and are limited to a single state or the Federal Capital Territory. The FAQs outline eligibility criteria, application processes, and transaction limits, with legacy BDCs failing to meet new standards by November 30, 2025, losing licenses.