Obinna Chima
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.
On the other hand, for CPC, the central
bank explained that a national CPC means a company registered to operate
in all states of the federation, while a regional CPC shall operate
within the states of one geo-political zone.
A company registered to operate as a
National CPC 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 Nigeria.
“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, 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 CBN from
time to time,” the circular added.
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