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How to start a Bureau De Change (BDC)
Business in Nigeria
A Bureau De Change (BDC) sector has remained an important unit
of the Nigerian financial market playing a crucial role in
exchange rate stability and job creation. It is a business where
people exchange currency for another. This business has been
defined by the Central Bank of Nigeria Manual to mean a retail
foreign exchange dealer carrying on the business of Personal
Travel Allowance (PTA), Business Travel Allowance, and also
inward and outward transfer. It is a company that is licensed to
carry out small-scale foreign exchange services in Nigeria and
whose sole object is the carrying on of such business on a
standalone basis.
The currency exchange market is a global decentralized
marketplace where currencies are bought and sold. It is one of
the largest financial markets, with daily trading volumes
exceeding trillions of dollars. The market operates 24 hours a
day, five days a week, and involves various participants,
including banks, financial institutions, corporations, and
individual traders.
Choosing the Right Location for Your Bureau De Change
Select a location that offers high visibility, accessibility,
and proximity to your target customer segments. Consider factors
such as tourist hubs, business districts, proximity to
transportation hubs, and local competition.
Training Staff on Currency Exchange Processes and Regulations
Provide comprehensive training to your staff on currency
exchange processes, compliance procedures, customer service best
practices, and handling different types of transactions. Foster
a culture of continuous learning to keep staff updated on
industry developments.
Emphasize the importance of delivering exceptional customer
service. Train your staff to communicate effectively, handle
customer inquiries and complaints professionally, and provide
accurate information about exchange rates and transaction
processes. Encourage a customer-centric mindset throughout the
organization.
Utilize social media platforms such as Facebook, Instagram,
Twitter, and LinkedIn to engage with customers, share
educational content, and promote special offers. Leverage social
media advertising and influencer collaborations to expand your
reach and attract new customers.
APPLICATION FOR BDC LICENCE
It is noteworthy that applying for a license is always in two
stages, namely; Approval-in-Principle (AIP) and Final License.
It is indispensable that a formal application is made to the
Central Bank of Nigeria (CBN) Governor before promoters can be
granted Approval in Principle to carry on the business of a BDC.
However, some documents need to be attached to this application
form such as the financial requirements, a feasibility report, a
copy of the draft Memorandum and Articles of Association, a
letter of intent, and personal information of the proposed
shareholders.
The financial requirements for setting up a BDC are as follows;
A minimum paid-up share capital of N35 Million
A non-refundable application fee of N150,000
A non-refundable licensing fee of N1 Million
A Mandatory caution deposit of N35 Million
Registration cost of N35 Million share capital company with CAC
(fee can be negotiated with a CAC Agent)
A non-refundable change of name fee of N150,000 (where
applicable)
The market for bureau de change services in Nigeria is national.
With a population of over one hundred and ninety million
(190,000,000) people and an estimated national population growth
rate of two point seven percent (2.7%) per annum, an average
economic growth rate of three point five percent (3.5%) per
annum in the past five (5) years, Nigeria has a large,
sustainable and expanding market for bureau de change services.
The investor seeks to establish a bureau de change business
licensed by the central bank of Nigeria (CBN) to provide
affordable and reliable bureau de change services to persons and
businesses seeking for Personal Travel Allowance (PTA), Business
Travel Allowance (BTA), medical and school fees.
Benefits of Starting a Bureau De Change Business
Lucrative Market: The currency exchange market presents
significant opportunities for profit, given its high trading
volumes and potential margins.
Diversification: A BDC business allows you to diversify revenue
streams by offering various financial services beyond currency
exchange.
Strong Demand: Currency exchange is a necessity for travelers,
international businesses, and individuals engaging in foreign
investments.
Resilience to Economic Conditions: The currency exchange market
is less influenced by local economic conditions, making it a
relatively stable business venture.
Get our Practical Guide on start a Bureau De Change Business in Nigeria. In this guide, you’ll learn all you need to know about starting and running a successful Bureau De Change business. From understanding the different types of Bureau De Change to creating a marketing strategy and setting up your business, we’ll provide everything you need to get started.
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