On Friday, the Central Bank of Nigeria (CBN) took a decisive step by revoking the licenses of 4,173 Bureau De Change (BDC) operators due to their failure to adhere to regulatory guidelines. This move, disclosed in a statement by the acting Director of Corporate Communications, Sidi Hakama, reduces the number of operational BDCs from 5,690 to 1,517.
In the statement, Hakama highlighted that the license revocation was executed under the powers granted to the CBN by the Bank and Other Financial Institutions Act, 2020, Act No. 5, and the Revised Operational Guidelines for Bureaux De Change, 2015. The list of affected operators is available on the CBN’s official website.
The revoked licenses were a result of the BDCs’ failure to comply with regulatory provisions, including the timely payment of fees, such as license renewal, and adherence to guidelines on returns and CBN directives. The regulatory framework also encompasses compliance with Anti-Money Laundering, Countering the Financing of Terrorism, and Counter-Proliferation Financing regulations.
The statement highlighted ongoing revisions to the regulatory and supervisory guidelines for BDC operations in Nigeria, emphasizing that compliance with the new requirements will be mandatory for all stakeholders once the revised guidelines take effect.
The CBN recently introduced draft guidelines for BDC operations, introducing key provisions such as a minimum share capital of N2 billion for Tier-1 BDCs, limitations on the cash buying and selling of forex by BDCs, and specified yearly limits for school fees transactions, among others.
Aminu Gwadabe, President of the Association of Bureau De Change of Nigeria, declined immediate comments on the development, citing personal reasons.
Reacting to the CBN’s move, Dr. Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, applauded the regulatory action, deeming it appropriate and necessary to streamline and manage the BDC sector effectively.
