The Central Bank of Nigeria has set new rules and capital requirements for Currency Processing Companies and Cash-In-Transit companies that want to operate in the financial sector.
The CBN stated this in a circular on ‘Revised guidelines for the registration of cash-in-transit and currency processing companies in Nigeria,’ on Monday.
It stated that a National Currency Processing Company must have a minimum capital of N3bn, while a regional CPC must have a minimum of N2bn, or such other amount as may be prescribed by the CBN from time to time.
The CBN stated that a company registered to operate a national Cash-In-Transit must have a minimum of N1bn, while a regional CIT company must have a minimum of N500m or such other amount as may be prescribed by the CBN from time to time.
Part of the circular read, “Companies registered to operate both national CPC and CIT shall have a minimum capital of N4bn 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 N2.5bn or such other amount as may be prescribed by the CBN from time to time.”
It stated that this order was to enhance the efficiency and cost-effectiveness of currency management, facilitate the generation of fit Naira banknotes for payment, and promote the use of shared facilities to drive down currency management cost.
It would also engender healthy competition among service providers and ensure product quality, integrity and standardisation in Nigeria.
The CBN mandated all companies, including Deposit Money Banks, who were desirous of providing currency distribution and/or currency processing services in Nigeria, either for themselves or for other DMBs to register with it.
It added that this update was in furtherance of the circular released by the CBN on the ‘Notice to companies providing currency sorting and distribution services and Deposit Money Banks providing these services for themselves or other banks in Nigeria,’ published on 14th December, 2009.
It warned that any private company and/or individual(s) operating without a valid registration issued by the CBN shall have the facility closed, and in addition the promoters shall be handed over to appropriate law enforcement agencies for prosecution.
