Have you been looking into starting a digital/ online bureau de-change business in Nigeria? It’s a good business that can earn you passive income.
In this blog post, I will hold your hands, and walk you through.
Let’s dive in.
What is the Digital Bureau de change?
Generally, it’s an online or digital platform that allows customers to buy and sell foreign currencies in Nigeria.
BDCs offer a convenient alternative to traditional give-and-take money exchange outlets and can be accessed through websites, mobile apps, or other digital channels. Examples of these websites include:
- Interswitch OnePipe
- Jumia Travel.
How does the digital Bureau de change business work
How does it work? Well, A digital Bureau de change works in different ways, however, I am going to explain one of them.
It works by allowing customers to buy and sell foreign currencies online.
These users known as customers access the BDC through a website or mobile app, where they can see live exchange rates and place orders for foreign currencies. The BDC processes the transactions, converts the currency, and transfers the funds to the customer’s bank account.
How do BDC websites make money?
In simple terms, they make huge money by charging a small fee on top of the market exchange rate.
How can I start a bureau de change business in Nigeria?
If you want to start a Bureau de change business in Nigeria, kindly follow the procedure below.
1. Obtain a license from the Central Bank of Nigeria (CBN) to operate as a BDC.
Before you can start a BDC business, you will need to get a license from the CBN.
This license is very crucial because it helps you to stand out and build trust from your customers. In other to obtain a license, you will need the following requirements, they include;
- Company Registration with the Corporate Affairs Commission (CAC).
- Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Compliance certificate from the CBN.
These documents are for certification so, you will need to obtain them.
2. Compliance with all monetary regulations and law
Whenever you think of starting a BDC business, it’s crucial to state that you and your business must not be a lawbreaker. You must accept, comply and adhere to all regulations and laws set up by the Central bank of Nigeria, these include; the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, 1994, AML/CFT regulations, and the Financial Action Task Force (FATF).
3. Build a secure website for transactions
Moving on to the next step is to build a brandable website that can be used for the exchange of currency. You may not be able to set up one, however, you may need to hire a developer who can handle the work and build a responsive platform for your business.
4. Pay the Required amount of Money governing Nigeria’s Monetary system
There is some money governing the establishment of the Bureau de change business in Nigeria. So, in other to establish one, you will be required to pay a certain amount of money in addition to all licenses acquired.
- A 35 Million Naira paid-up share capital
- A hundred and fifty thousand nonrefundable application fee
- A 35 Million Naira share capital company registration cost
- A non-refundable fee of ten thousand Naira only (10,000)
With all these documents in hand, you can start your BDC business without hindrance.
5. BDC Business promotions
This is the last stage. You will need to promote your business so that potential customers can know your brand. With this, your BDC business will grow gradually to its zenith.
How much does it cost to start a bureau de change?
It costs nothing much. A non-refundable fee of 10,000 naira is required alongside other aforementioned documents and processes. A 35 Million Naira paid-up share capital and a hundred and fifty thousand nonrefundable application fee is needed too.
How much does it cost to register BDC in Nigeria?
In other to register a BDC business, a 35 Million Naira share capital company registration cost is usually required.
How profitable is the bureau de change business in Nigeria?
why do you think many people are into this business if not lucrative? It’s a very lucrative online business that can fetch you passive income monthly.