In a bid to restore confidence in Nigeria’s foreign exchange market, the Central Bank of Nigeria (CBN) has taken a significant step by revoking the licenses of 4,173 Bureaux De Change (BDC) operators.
The CBN accuses these operators of failing to comply with regulatory provisions, as revealed in a statement by the Acting Director of Corporate Communications, Sidi Ali Hakama.
The move comes at a time when the nation’s currency, the naira, has been experiencing a steady decline against the U.S. dollar, leading to economic challenges, inflation, and high living costs. The central bank aims to strengthen regulatory oversight and uphold compliance within the BDC sector.
The list of affected BDC operators is available on the CBN’s website, and the bank emphasizes its commitment to revising regulatory and supervisory guidelines for BDC operations in Nigeria. Compliance with the new requirements will be mandatory for all stakeholders in the sector, ensuring adherence to guidelines, directives, and circulars, particularly related to Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) regulations.
The CBN’s action is grounded in the powers conferred upon it by the Bank and Other Financial Institutions Act (BOFIA) 2020, Act No. 5, and the Revised Operational Guidelines for Bureaux De Change 2015. Among the stipulated requirements are timely payment of fees, including license renewal, adherence to reporting guidelines, and compliance with CBN directives.
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The naira’s recent depreciation has prompted various measures from regulatory bodies, including the Economic and Financial Crimes Commission (EFCC) forming a special task force to address illegal forex transactions. The CBN had also accused the cryptocurrency platform Binance of manipulating the naira, contributing to the currency’s decline in the forex market. The government has reportedly imposed a substantial fine on Binance for its alleged role in the forex crisis.
As Nigeria grapples with economic challenges, the CBN’s stringent measures underscore its commitment to stabilizing the forex market and addressing issues impacting the national currency. The effectiveness of these actions remains a focal point amid ongoing efforts to mitigate economic hardships in the country.
