CBN revises guideline for currency processing coys, others

The Central Bank of Nigeria of Nigeria has issued a revised guideline for the registration of Currency Processing Companies (CPCs), Cash Intransit Companies (CITs) and Deposit Money Banks (DMBs)

In a circular tagged, “Revised Guidelines for the Registration of Cash-Intransit and Currency Processing Companies in Nigeria” and issued by Priscilla Ekwere Eleje, CBN’s director of currency operations, the revision is aimed at enhancing efficiency and cost-effectiveness of currency management.

For Cash Intrasit Companies (CITs), the CBN said the revised guidelines were meant to further strengthen healthy competition among service providers and also promote quality of currencies.

“In a bid to enhance cost-effective currency management and 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, the Central Bank of Nigeria (CBN) hereby mandates all companies, including Deposit Money Banks, who are desirous of providing currency distribution and/or currency processing services in Nigeria, either for themselves or for other Deposit Money Bank(s) to register with the Central Bank of Nigeria.

“This update is in furtherance of the circular released by the Central Bank of Nigeria 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,” she said.

The requirements for registration include the company been duly incorporated in Nigeria and registered either for National or Regional Operations as well as poses a minimum capital of N1 billion or such other amount as may be prescribed by the CBN from time to time.

 Other requirements, as stated in the circular, stated that “The company must 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 authorized to move cash in Naira and foreign currencies to any part of Nigeria, while 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.