CBN Issues Guidelines For Registration Of Currency Processing Companies

The Central Bank of Nigeria (CBN) has called on all companies, including Deposit Money Banks (DMBs), interested in providing currency distribution processing services in Nigeria to register with the apex bank.

The update is sequel to an earlier notice published by the CBN on 14th December 2009.

In a  revised guideline for the registration of “Cash-in-Transit (CIT) and Currency Processing Companies (CPC) in Nigeria,” posted on its website on Tuesday,  the CBN directed that prospective CIT companies must be duly incorporated in Nigeria before it can be eligible for registration with the bank. Also, they must be registered for national or regional operations.

According to the CBN, national CIT means a company registered to operate in all states of the federation, while a regional CIT shall operate within the states of one geo-political zone.

The circular further stipulated that a company registered to operate as a national CIT should have a minimum capital of N1 billion or such other amount as may be prescribed by the regulator from time to time.

In addition, a national CIT 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.

On the other hand, the CBN explained that a company registered to operate as a Regional CIT shall have a minimum capital of N500 million or such other amount prescribed by the regulator, 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.

A company registered to operate as a National CPC is required by the regulator to have a minimum capital of N3 billion and be entitled to establish offices in any state of the federation subject to approval by the CBN.

“All companies providing both cash-in-transit and currency processing services shall meet all the requirements for registration as specified under CIT and CPC. ,” the circular added.

The Apex bank, however, noted that the call for registration  is  to enhance the efficiency and cost-effectiveness of currency management, facilitate the generation of fit Naira banknotes for payment, promote the use of shared facilities to drive down currency management cost, engender healthy competition among service providers and ensure product quality, integrity and standardization in Nigeria