The Central Bank of Nigeria has granted licenses to 82 Bureaux De Change operators, allowing them to commence operations from November 27. This move is in line with the Bank and Other Financial Institutions Act 2020, which grants the CBN the power to regulate and supervise financial institutions. The licensing is also an enforcement of the Regulatory and Supervisory Guidelines for BDC Operations in Nigeria 2024.

According to the CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali, only licensed BDCs listed on the bank’s website are authorized to operate from the effective date. The CBN will continue to update the list of licensed BDCs on its website for public verification. The bank has warned the public to avoid dealing with unlicensed foreign exchange operators, as operating a BDC without a valid license is a punishable offense under the BOFIA 2020.

The development comes after the CBN revoked the licenses of 4,173 BDC operators in March 2024 due to regulatory non-compliance. This move reduced the number of licensed BDCs from around 5,690 to approximately 1,517. The CBN’s decision to grant licenses to 82 new BDC operators is expected to increase the number of licensed operators in the country.

The CBN’s regulatory guidelines aim to ensure that BDCs operate within the framework of the law, providing a stable and secure foreign exchange market. The bank’s efforts to regulate the BDC sector are part of its broader strategy to promote financial stability and prevent illegal foreign exchange transactions.

The public is advised to verify the licenses of BDC operators before conducting any foreign exchange transactions. The CBN’s website provides a list of licensed BDCs, and the public can report any suspicious or unlicensed operators to the bank. By regulating the BDC sector, the CBN aims to protect consumers and promote a stable financial system. The bank’s actions demonstrate its commitment to enforcing regulatory guidelines and maintaining the integrity of the financial sector.