CBN Acts Swiftly: Revokes Licences of 4,173 BDCs Over Regulatory Violations
Written by Deborah Oyinloye on March 2, 2024
In a decisive move to enforce regulatory compliance, the Central Bank of Nigeria (CBN) has revoked the operating licenses of 4,173 Bureaux De Change (BDC) operators. This action is taken under the powers vested in the CBN by the Bank and Other Financial Institutions Act (BOFIA) 2020 and the Revised Operational Guidelines for Bureaux De Change 2015, reflecting the apex bank’s commitment to upholding financial integrity.
According to Mrs Sidi Ali Hakama, the acting Director of the Corporate Communications Department at the CBN, the affected BDCs failed to adhere to key regulatory provisions. These include timely payment of necessary fees, compliance with Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) regulations, as well as the submission of required returns.
Highlighting the CBN’s ongoing efforts to strengthen oversight in the sector, Hakama emphasized that the central bank is revising regulatory and supervisory guidelines for BDC operations. Once implemented, these revisions will ensure mandatory compliance for all stakeholders, enhancing transparency and accountability.
In a related development, CBN Governor, Mr. Olayemi Cardoso, provided reassurance to foreign investors during an Investor Virtual Call facilitated by the Nigerian Exchange Group (NGX Group). Cardoso reaffirmed the CBN’s commitment to resolving outstanding foreign exchange (FX) liabilities of remaining banks, stating, “We have paid as much as we can to clear the backlog of all banks save five.”
Cardoso’s remarks underscore the progress made in attracting foreign portfolio inflows, with Nigeria already securing $2 billion in investments this year. He attributed this success to the implementation of transparent and open-market policies, aimed at restoring investor confidence.
Moreover, the CBN’s recent open market operation (OMO) auction, which saw substantial investor participation, reflects confidence in the central bank’s monetary policy measures. With the CBN selling N1.06 trillion in OMO bills, investors demonstrated heightened appetite despite prevailing economic challenges.
However, while the naira maintained gains against the dollar on the official window, a marginal depreciation was observed on the parallel market. This underscores the need for continued vigilance in managing currency stability amid evolving market dynamics.
Author: Deborah Oyinloye
With an interest in media, Deborah aims to impart the lives of people positively.
