Bureau De Change business is like starting a mini bank of your own. It is so lucrative that if you are able to meet the requirements and get started, you are guaranteed to hit hundreds of millions of naira in no time. It’s a mega business that any serious entrepreneurs must not ignore, but one thing I really don’t understand is why people from the Northern part of Nigeria are the most doing the business.
You may be wondering how does a bureau de change operators make profit? A bureau de change makes profit through the exchange rate they use in calculating transactions. They also get explicit commission for their service in most cases.
The exchange rates charged at bureaux is the same as the one charged in interbank forex transactions, and this rate is designed by the central bank to ensure that the banks and the bureau de change operators get profit. Therefore, the rate at which bureau de change operators will buy their foreign currency will be different from the rate they will sell.
You can make millions on naira in this business within one week and you can as well loose everything in a matter of days if you are not careful. Money is a very sensitive commodity that attracts so much attentions including the attention of criminals.
So, you have to prepare yourself for the risks involved in money movement. Some operators have been killed in the past by criminal in effort to take away their money. And fraudsters are always devising means to defraud bureau de change operators.
In this short note, I want to explain the procedures and requirements you need to meet if you wants to become a Bureau de change operator in Nigeria. If you are an expert in the business and think something is missing that should be added, you can contribute the information by making a comment below.
Application and Registration Procedure
The information below is sources from an experienced bureau de change operator on Nairaland and hope it will be helpful to you, go through it and follow the procedure.
1. N10m mandatory application money to CBN (refundable on approval). This draft must be submitted with your application.
2. N10,000 Application/processing fee.
3. After Interim Approval you have to incorporate your company with CAC with a share capital of N10m. Cost is approximately N400k (due to stamp duty)
4. You then joined the Association of Bureau De Change Operators of Nigeria (ABCON), By the time they add all their fees its approx N600k. Approval letter from the Association is mandatory before you can get your final approval.
5. Inspectors will come to inspect the building you proposed to do business in (cost nothing, just entertainment money).
6. Once approved you have to leave N500k mandatory deposit with Central Bank of Nigeria (CBN), you will get interest on this half yearly.
On receipt of your final approval you are then ready to start bidding from CBN. Bidding means you wire Naira on Monday morning before noon and collect dollars ($50k) on Wednesdays. BEFORE YOU CAN DO THIS YOU WILL NEED TO REMIT $20,000 to CBN account in the USA. Don’t ask me why USA. You can use part of the N10m refunded to you to do this.
By and large book N3.5m for processing, I don’t think you can do it cheaper.