INTRODUCTION

The Central Bank of Nigeria (CBN) released an exposure draft of the Revised Regulatory and Supervisory Guidelines for Bureau de Change (BDC) Operations in Nigeria on the 23rd of February, 2024. This comprehensive document, albeit in its exposure draft form, aims to strengthen the regulatory framework governing BDCs in Nigeria, ensuring compliance, and sound operational practices with a view to ensuring adequate capitalization of BDCs, eliminating arbitrage and adequate regulation and transparency in the supervision process of BDCs.

In a statement released by the Director, Financial Policy and Regulation Department of the CBN on the 23^rd February 2024, the CBN conveyed the exposure draft which seeks to introduce revolutionary adjustments to the regulatory framework for BDCs. In this newsletter, we set out the top ten highlights of the exposure draft, itemizing the salient changes proposed by the CBN.

1. Non-Eligible Promoters

The CBN seeks to make a bold statement with regard to regulating BDC operations in Nigeria. The exposure draft in no mean feat, seeks to carve out a total of 16 categories of persons, who cannot form part of ownership or control of BDCs. Commercial banks, OFIs and Payment Service providers and their staff are not allowed to own a BDC. Government at all levels and public officers are also excluded. The same goes for NGOs, corporative societies and academic/religious institutions. Importantly, the exposure draft also limits ownership to resident Nigerians and regulated companies alone. A shareholder in another BDC company, telecommunication service providers and a person on the Sanctioned List are also prohibited.

Read the full publication.