Nigeria’s Central Bank Orders 4,173 Bureau De Change Companies to Change Names or Face Consequences

In a recent move, the Corporate Affairs Commission (CAC) in Nigeria has issued a three-month ultimatum to 4,173 Bureau De Change (BDC) companies whose licenses were revoked by the Central Bank of Nigeria (CBN) for non-compliance with regulatory standards. The affected companies have been advised to change their names and objects within the stipulated timeframe, failure to which will result in the cancellation of their certificate of incorporation and dissolution.

According to the CAC notice issued on Wednesday, the revocation of the operational licenses was announced in February 2024, and the affected companies have been given until the end of the three-month period to comply with the directive. The notice stated that failure to change the names and objects within the stipulated time frame will result in the cancellation of the certificate of incorporation and dissolution, making it unlawful for the company to continue operating.

This development comes after the CBN revoked the operational licenses of 4,173 BDCs in March this year for failure to adhere to regulatory provisions. In May 2024, the CBN ordered all BDC operators to re-apply for licenses, increasing the minimum capital requirement for tier-1 and tier licenses to N2 billion and N500 billion, respectively.

The CAC’s directive is aimed at ensuring that the affected companies comply with the regulatory standards and maintain a high level of transparency and accountability in their operations. The move is also expected to promote a healthy and competitive market for BDCs in Nigeria.

The affected companies have been advised to take immediate action to change their names and objects to avoid any further consequences. The CAC has also warned that it will not hesitate to take legal action against any company that fails to comply with the directive.

The development has sent shockwaves through the financial sector in Nigeria, with many stakeholders expressing concerns about the impact of the directive on the economy. However, the CBN and the CAC have assured that the move is aimed at promoting a stable and transparent financial system in the country.

Key Takeaways:

• The CAC has issued a three-month ultimatum to 4,173 BDC companies to change their names and objects.
• Failure to comply with the directive will result in the cancellation of the certificate of incorporation and dissolution.
• The affected companies have been advised to take immediate action to avoid any further consequences.
• The CBN revoked the operational licenses of 4,173 BDCs in March this year for failure to adhere to regulatory provisions.
• The CBN ordered all BDC operators to re-apply for licenses, increasing the minimum capital requirement for tier-1 and tier licenses to N2 billion and N500 billion, respectively.