The Central Bank of Nigeria (CBN) has reduced the number of Bureau de Change (BDC) dealers from 5,689 previously approved last year to 2,991.

The apex bank on Wednesday published a list of approved BDCs which revealed that the licenses of 2,698 BDCs had been revoked.

Recall that a similar list was published by the apex bank last year, which approved 5,689 black market dealers.

The number of operators has experienced substantial growth, increasing from 74 in 2005 to 5,689 in 2021.

The suspended CBN governor, Godwin Emefiele, had later prohibited the sale of foreign exchange to BDCs due to concerns of round-tripping and involvement in illicit financial activities.

Under President Bola Tinubu’s administration, recommendations were made to implement key reforms such as increasing the capitalization requirements for BDC operators and allowing Nigerian banks to act as primary dealers in the forex market.

“Nigeria’s Central Bank Revokes Licenses of Over 2900 Bureau De Change Dealers”

The Central Bank of Nigeria has taken decisive action by revoking the licenses of more than 2900 Bureau De Change (BDC) dealers. This move comes as part of the bank’s efforts to address issues related to currency exchange and monetary policies in the country.

The revocation of licenses is seen as a significant measure to tackle concerns such as money laundering, illegal financial activities, and the destabilization of the Nigerian Naira. By revoking licenses, the Central Bank aims to regulate the BDC sector more effectively and maintain stability in the foreign exchange market.

This development signals the Central Bank’s commitment to ensuring a transparent and well-regulated financial system in Nigeria. It also emphasizes the need for strict adherence to the established guidelines and regulations within the BDC industry.

The affected BDC operators are now required to cease their currency exchange operations immediately. The Central Bank has urged them to cooperate fully with the revocation process and adhere to all necessary procedures to avoid any further legal actions.

As the situation unfolds, the Central Bank is expected to provide further updates and guidance to safeguard the stability and integrity of Nigeria’s financial landscape.