4,173 Bureaux De Change Operators had their licenses withdrawn by the Central Bank of Nigeria (CBN), which cited noncompliance with regulations as the reason for the action.
Sidi Ali Hakama, the bank’s acting director of corporate communications, made this revelation in a statement on Friday.
The action is a component of attempts to rebuild trust in the country’s foreign exchange market, according to the central bank.
The CBN stated that it is updating the regulatory and supervisory rules for Bureau de Change activities in Nigeria, noting that the list of impacted BDC operators is published on its website. It further stated that all parties involved in the sector must comply with the new requirements.
The Bank and Other Financial Institutions Act (BOFIA) 2020, Act No. 5, and the Revised Operational Guidelines for Bureaux De Change 2015 (the Guidelines) all granted it authority to take the action, according to the statement.
The bank claims that these include filing returns in accordance with the guidelines, paying all required fees—including license renewal—within the allotted time frame in accordance with the guidelines, and adhering to the guidelines, directives, and circulars of the CBN, especially those pertaining to anti-money laundering (AML), countering the financing of terrorism (CFT), and counter-proliferation financing (CPF) regulations.
Over the previous few weeks, the value of the naira has declined significantly in relation to the US dollar.
Nigeria is experiencing protests in several regions of the country due to the country’s rising inflation, forex crisis, economic hardship, and high cost of living brought on by the removal of the gasoline subsidy.Since the new government floated the currency and harmonized the exchange rate windows, the value of the naira has dropped to an all-time low.
The value of the Nigerian Naira increased from over N700/$1 in May 2023 to over N1500/$1 at this time.
In order to crack down on dollar racketeers, the Economic and Financial Crimes Commission (EFCC) was compelled by the circumstances to mobilize a 7,000-man special task force throughout its 14 zonal commands.
