Nigeria’s central bank has announced the revocation of licenses for 4,173 exchange bureaus.
This action, disclosed by Central Bank of Nigeria (CBN) spokesperson Hakama Sidi Ali, comes as a response to a myriad of infractions, including failure to adhere to regulatory guidelines, such as timely submission of transaction reports and payment of renewal fees.
It also follows the release of new guidelines on February 23, which introduced stricter requirements for operators in the forex market. Among the key provisions of the updated regulations is the prohibition of street-trading of foreign exchange and the imposition of higher minimum capital thresholds for exchange bureaus, set at a minimum of 2 billion naira (approximately $1.3 million).
The decision to raise capital requirements and enforce compliance measures underscores the central bank’s commitment to addressing chronic foreign exchange shortages that have plagued Nigeria’s economy.
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By implementing these reforms, authorities aim to restore stability and transparency to the forex market, facilitating smoother currency transactions and bolstering investor confidence.
According to CBN spokesperson Hakama Sidi Ali, revoking licenses also reflects concerns regarding anti-money laundering and terrorism finance regulations. The central bank’s move signals a broader effort to enhance oversight and regulation within the financial sector, aligning with international standards and best practices in combating financial crimes.
In a statement issued by the central bank, Sidi Ali emphasized the importance of adherence to the revised regulatory and supervisory guidelines for Bureau de Change operators. The forthcoming revisions are expected to introduce stricter compliance measures and standards, ensuring that all stakeholders in the sector uphold the highest levels of integrity and accountability.
