Finance-Forex & Trading26 Comments

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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.

Download the CBN Guide Here

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26 Comments

  • 2087 December 11, 2013

    A friend told me that you need a licence before you can start and the licence is always not available unless you want to buy from someone and you will need at least 15Million Naira. Please is it true.

    Reply

    • Anonymous December 13, 2013

      Hard to get but not 15m . Got offered one for 2.2m

      Reply

      • Anonymous January 10, 2014

        ^^^ please kindly provide me a seller. i am interested

        Reply

  • santooo January 15, 2014

    The 3.5m stated..is it minus the 20,000 dollars and the 500k and 600k for the association?

    Reply

  • Anonymous April 6, 2014

    i am looking for a trusted person that can help me to register burea de change

    Reply

  • Anonymous April 6, 2014

    I am looking for a trusted person that can help me to register burea de change

    Reply

  • Anonymous April 28, 2014

    Please how much will it cost me totally to start operating?

    Reply

  • Anonymous April 30, 2014

    I am interested in case someone wants to sell

    Reply

  • mercy ihecci June 14, 2014

    I WOULD LIKE TO KNW HOW TO REGISTER A FUND MANGEMENT COMPANY

    Reply

  • mercy ihecci June 14, 2014

    i would like to knw the cost and procedures for registering a fund management company

    Reply

  • Silver June 28, 2014

    why are u killing bdc….the reason why it is Hausa filled business is because they kept it within and amongst themselves….However, the policies have changed ohhhh….it is no more juice ohhh

    Reply

  • Anonymous July 31, 2014

    yep Policy has changed its 35m with various other expense not that Juicy for now however, it is a cool deal. I own one.

    Reply

    • bibi July 27, 2016

      hi there,

      I’m a registered money transfer agent in Europe and constantly require naira, do not think there’s any need operating a bureau de change if i can get a bureau de change to supply it.

      kindly let me know if you can supply naira for euro and dollar.

      Reply

  • Anonymous December 21, 2014

    35m for just the licence. I would like to do this business as long as it's guaranteed.

    Reply

  • Basil January 22, 2016

    please give me information on how to register fund management company.

    Reply

  • sanmi June 22, 2016

    This reuirement shows you must be rich already before you can start

    Reply

  • isaiah Alabi September 22, 2017

    Hi everyone, i am a Lawyer, i can help you with the registration. You may wish to contact me on my mobile 08099927405

    Reply

  • Nomso victor April 22, 2018

    Please can anyone employ me. Really n need and am really a trusted person Nd a student. I live in Abia state Nigeria.
    I cn run errands for d company or anytin else. Really n need of money for my school pls. Tanks and God bless

    Reply

  • Chief Enifovie June 7, 2018

    Yes, can I buy a license? I need one. What is the latest cost to set up a Bureau de change? Who can help me?

    Reply

    • Ansa Ogbuefi August 30, 2018

      I can help you. i know someone who can give you useful information on how to get it

      Reply

    • Ansa Ogbuefi August 30, 2018

      Yes you can. I know someone who could give the necessary breakdowns on how to obtain it.

      Reply

  • Emmanuel Samuel September 4, 2018

    In summary how much will the registration cost

    Reply

  • sadiq zubeir September 29, 2018

    Pls , I am a fresh graduate and have keen interest in forex trading and operational services

    Reply

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