The Central Bank of Nigeria (CBN), on Monday, published a revised guideline for operators of cash-in-transit and currency processing services in the country, in what it said is part of efforts to enhance efficiency and cost-effectiveness.
The move, the CBN noted, would also encourage the use of shared facilities to reduce currency management cost, ensure fit banknotes, engender healthy competition among operators and product quality.
According to the guideline, companies, including Deposit Money Banks willing to provide currency distribution and/or processing services in the country, either for themselves or for others to register with the CBN.
Such operators must, however, be duly incorporated in Nigeria to offer the services nationwide, or as a regional player, in which case it operates in the states within a geo-political zone of the country.
For National cash-in-transit operating licence, the CBN set N1bn as minimum capital, or such other amount as may be prescribed by the CBN from time to time; while a regional player must have a minimum capital of N500m.
Besides prescribing the modes of operation of this companies, the guideline also requires that the promoters provide “evidence of liaison with the appropriate security agencies such as the Police, Department of State Service, Office of the National Security Adviser, Nigeria Customs Service, as well as the Economic & Financial Crimes Commission, among others.
There shall be a working agreement with the Police by the CIT Company to provide security back-up.
In the case of currency processing companies shall a minimum capital of N3bn for national licence, while N2bn is the minimum for regional licence, and can operate from a single location at the initial stage, and “demonstrate ability and commitment to expand the scope of its operations, upgrade its processing systems, information and communication technology.”
The company is to “provide evidence of technical support from manufacturers of currency processing systems to ensure continuous and un-interrupted operations… evidence of insurance with a reputable Nigerian insurance company to cover cash and personnel.”
However, companies seeking to provide both CIT and currency processing services (collocation), are besides meeting all the requirements for registration as specified under Cash-in-Transit and Currency Processing operations shall have a minimum capital of ₦4bn for national and N2.5bn for regional operations.
Two or more Deposit Money Banks that desire to provide currency processing and distribution services are to jointly float a subsidiary company, which shall meet all registration requirements and be subject to the regulatory and supervisory framework of the CBN.