Central Bank of Nigeria Revokes Licenses of 4,173 Bureaux De Change Operators for Regulatory Violations
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CBN Actions Towards Finance
CBN Actions Towards Finance
The Central Bank of Nigeria (CBN) has taken decisive action by revoking the operating licenses of 4,173 Bureaux De Change (BDC) operators. The revocation comes as a result of the operators’ violation of regulatory guidelines and failure to comply with the provisions set forth by the CBN. The bank exercised its powers under the Bank and Other Financial Institutions Act (BOFIA) 2020 and the Revised Operational Guidelines for Bureaux De Change 2015.
In a statement issued by the acting Director of the Corporate Communications Department, Mrs. Sidi Ali Hakama, the CBN disclosed that the affected BDCs failed to meet various regulatory provisions, including the payment of necessary fees and license renewal within the stipulated period. Additionally, they did not adhere to the operational guidelines and failed to comply with anti-money laundering, countering the financing of terrorism, and counter-proliferation financing regulations.
The CBN is currently revising the regulatory and supervisory guidelines for Bureaux De Change operations in the country. Once the revised regulations are in effect, compliance will be mandatory for all stakeholders in the sector.
In a separate development, CBN Governor Mr. Olayemi Cardoso reassured foreign investors during an Investor Virtual Call facilitated by the Nigerian Exchange Group (NGX Group). He stated that the central bank would settle the outstanding foreign exchange liabilities of the remaining five banks within a few days. Cardoso also highlighted that Nigeria had attracted $2 billion in foreign portfolio inflows this year, demonstrating confidence in the country’s policies and market transparency.
The CBN’s ongoing efforts to manage liquidity in the financial system led to the sale of N1.06 trillion in its latest open market operation (OMO) auction. The auction, held on March 1, 2024, received significant interest from investors. Stop rates were set as high as 21.5 percent, indicating the central bank’s commitment to controlling money in circulation and inflation. The auction was conducted for three categories of OMO bills with different tenors: 95-day, 179-day, and 361-day.
The naira maintained its gain against the dollar on the official window for three consecutive days. However, it depreciated marginally on the parallel market, closing at N1,575 to a dollar. On the official Nigerian Autonomous Foreign Exchange (NAFEM), the naira exchange rate closed at N1,548.25 to a dollar, representing a gain compared to the previous day.
The CBN’s actions reflect its commitment to enforcing regulatory compliance and maintaining stability in the Nigerian financial system.
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