The Central Bank of Nigeria (CBN) has licensed new 366 Bureau De Change (BDC) operators between January 2018 and May this year..
A new report by the apex bank on the ‘Functions, Operational Guidelines And Compliance For BDC Operations In Nigeria’ showed that with the newly licensed operators, the number of registered BDCs in the country now stands at 4,106.
According to the report prepared by the Other Financial Institutions Supervision Department of the apex bank, Lagos has the highest number of the BDCs totalling 2,123, followed by Kano, Abuja and Anambra states with 806, 745 and 171, respectively.
The other 32 states have only 261 BDCs operating within their domains.
Noting that there still exist unlicensed BDCs operating illegally in the black market, the CBN restated its commitment to ensuring effective supervision and applying sanctions on BDCs that contravened the laws.
According to the banking system regulator, the BDC subsector remained a critical segment of the foreign exchange market which has served as a veritable tool for contemporary exchange rate management in the country and therefore deserves the necessary support for growth.
The report stated further: “The CBN will continue to play its statutory and interventionist role to promote the orderly growth, development and sustainability of the sector, through effective supervision and robust enforcement of compliance with applicable extant laws and regulations.
“In line with its zero-tolerance policy, the CBN will continue to impose appropriate sanctions against regulatory breaches including the revocation of licences of errant BDCs”, the apex bank added.
To sanitise the BDC segment of the forex market, the CBN canvassed the need for the Association of Bureaux de Change Operators of Nigeria (ABCON) to check the illegal activities of street traders.
This is even as it charged the association to also ensure more effective self regulation, develop and implement a code of conduct for members to promote ethical practices and transparency in the industry.
