By Babajide Komolafe

The Central Bank of Nigeria (CBN) has said that Cash-in-Transit (CIT) companies must have a minimum capital of N1 billion to obtain a national licence.

The CBN said that CIT firms with a national licence will be designated as National CIT while firms with a regional licence will be designated as Regional CIT.

The apex bank added that firms that want to operate as Regional CIT must have a minimum capital of N500 million.

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The CBN disclosed this in the revised guidelines for the registration of Cash-In-Transit and Currency Processing companies in Nigeria.

The CBN stated that for any company to operate   CIT services, it must be duly incorporated in Nigeria.

It stated further that,  “The company shall be registered either for National or Regional Operations. For the purpose of these guidelines, 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 (1) geo-political zone.”

Elaborating on the status of a National CIT, the apex bank said:  A company registered to operate as a National CIT shall:  Have a minimum capital of N1 billion or such other amount as may be prescribed by the CBN from time to time; 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;  Be authorized to move cash in Naira and foreign currencies to any part of Nigeria”.

On the status of a Regional CIT, the CBN said: “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 (1) geopolitical zone subject to approval by the CBN, for the purpose of carrying out its operations; Be authorized to move cash in Naira and foreign currencies within one (1) geopolitical zone; Any registered regional CIT shall be prohibited from establishing offices or carrying out operations in other geo-political zones.”

Vanguard