CBN Lists Conditions for Banks’Offering of Currency Processing Services

Banks desirous of providing currency processing and distribution services are expected to jointly collaborate with two or more of their peers to float a subsidiary company, the Central Bank of Nigeria (CBN) has stated.

But the subsidiary company would be expected to meet all the registration requirements for cash-in-transit (CIT) and currency processing companies (CPC).

The banking sector regulator disclosed this in its, “Revised Guidelines for the Registration of Cash-in-Transit and Currency Processing Companies in Nigeria,” posted on its website.

The central bank stressed that any private company or individual(s) operating without a valid registration would have the facility closed, and in addition the promoters shall be handed over to appropriate law enforcement agencies for prosecution.

The bank regulator said the latest circular was to enhance 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 and engender healthy competition among service providers, among others.

For CIT companies, the banking sector regulatory stipulated that the company should be duly incorporated in Nigeria and should be registered either for national or regional operations.

A 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.

According to the central bank, 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, 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 the CBN 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.