The Central Bank of Nigeria (CBN) on Friday revoked the licences of 4,173 Bureau de Change operators over their failure to meet regulatory guidelines.
Sidi Hakama, the acting director of corporate communications at the top bank, made the announcement in a statement.
As a result, 1,517 BDCs will be operating, up from 5,690 initially.
However, when reached for remarks on the development, Aminu Gwadabe, President of the Association of Bureau De Change of Nigeria, told newsmen that he wanted to pray a few minutes before 8 p.m.
Subsequent calls to his line were not answered.
According to the CBN statement, the licence removal was carried out in accordance with the apex bank’s authorities under the Bank and Other Financial Institutions Act, 2020, Act No. 5, and the Revised Operational Guidelines for Bureaux de Change, 2015.
The statement read in part, “The Central Bank of Nigeria, in the exercise of the powers conferred on it under the Bank and Other Financial Institutions Act, 2020, Act No. 5, and the Revised Operational Guidelines for Bureaux De Change, 2015, has revoked the licences of 4,173 Bureaux De Change Operators.
“The list of affected BDC operators is available on the bank’s website (www.cbn.gov.ng).”
It further stated that the impacted institutions failed to follow at least one of the regulatory provisions.
According to the statement, the regulatory regulations require payment of all essential costs, including licence renewal, within the specified time frame.
It added, “The affected institutions failed to observe at least one of the following regulatory provisions: Payment of all necessary fees, including licence renewal, within the stipulated period in line with the guidelines.
“Rendition of returns in line with the guidelines; compliance with guidelines, directives, and circulars of the CBN, particularly Anti-Money Laundering, Countering the Financing of Terrorism and Counter-Proliferation Financing regulations.
“The CBN is revising the regulatory and supervisory guidelines for Bureau de Change operations in Nigeria. Compliance with the new requirements will be mandatory for all stakeholders in the sector when the revised guidelines become effective.
“Members of the public are hereby advised to take note and be guided accordingly.”
Recall that the CBN recently issued a draft guideline for BDC operations throughout the country.
The criteria include a minimum share capital of N2 billion for Tier-1 BDCs, a $500 limit on BDCs’ cash buying and selling of FX, and a $10,000-year limit on school tuition, among other provisions.
Dr Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, reacted to the development by applauding the move to regulate BDC operations.
He said, “Definitely, revoking the licences of non-operational BDCs is the appropriate thing to do now. It is the right move because the previous number was difficult to manage and unwieldy.”
