The Central Bank of Nigeria (CBN) has released new guidelines for banks desirous of providing currency processing and distribution services.
For such services to be provided, such a bank is expected to collaborate with two or more banks and set up a subsidiary company that meets all the registration requirements for cash-in-transit (CIT) and currency processing companies (CPC).
The apex bank listed the latest criteria in its just published ‘Revised Guidelines for the Registration of Cash-in-Transit and Currency Processing Companies in Nigeria’ hoisted on its website.
It warned that any private company or individual(s) operating without a valid registration would have the facility closed just as the promoters shall be handed over to appropriate law enforcement agencies for prosecution.
The CBN stated that the latest monetary measure was aimed at enhancing the efficiency and cost-effectiveness of currency management, facilitating the generation of fit naira banknotes for payment, promoting the use of shared facilities to drive down currency management cost and engendering healthy competition among service providers, among other benefits.
It stated further that for a CIT company to qualify for rendering such services, the company should be duly incorporated in Nigeria and should be registered either for national or regional operations.
A national CIT company is an organisation registered to operate in all states nationwide while a regional CIT shall operate within the states of one geo-political zone.
To qualify as a national CIT company, the industry regulator stated that such a company should have a minimum capital of N1 billion or such other amount as may be prescribed by the regulator from time to time.
The company would be entitled to establish offices in any state of the federation subject to approval by the CBN, for the purpose of carrying out its operations and be authorised to move cash in naira and foreign currencies to any part of Nigeria.
The CBN stated further that a company registered to operate as a Regional CIT shall have a minimum capital of N500 million or such other amount as may be prescribed by it from time to time; be entitled to establish offices in states within one geo-political zone subject to the approval by the CBN, for the purpose of carrying out its operations and be authorised to move cash in naira and foreign currencies within one geo-political zone.
For CPC, the industry regulator stated that a national CPC means a company registered to operate in all states of the federation and that such an entity shall have a minimum capital of N3 billion or such other amount as may be prescribed by the CBN from time to time and be entitled to establish offices in any state of the federation subject to approval by the CBN, for the purpose of carrying out its operations and be authorised to process cash in naira and foreign currencies to any part of the country.
The CBN required in the circular that a regional CPC shall operate within the states of one geo-political zone.
It stated that all companies providing both cash-in-transit and currency processing services shall meet all the requirements for registration as specified under CIT and CPC.
In addition, the apex bank required that companies registered to operate both national CPC and CIT shall have a minimum capital of N4 billion or such other amount as may be prescribed by the CBN from time to time, while companies registered to operate both Regional CPC and CIT shall have a minimum capital of N2.5 billion or such other amount as may be prescribed by the apex bank from time to time.
