Why we revoke licenses of over 4,000 Bureau De Change operators, Nigeria’s Central Bank explains

As part of moves to sanitise the Nigerian forex market, the Central Bank of Nigeria (CBN) has suspended the licences of over 4,000 Bureau De Change operators violating operation regulations.

Sidi Ali, Hakama, spokesperson for CBN, announced in a statement on Friday that the CBN “has revoked the licenses of 4,173 Bureaux De Change Operators,” adding that “affected institutions failed to observe its regulations” in their operations.

The apex bank noted that the regulation includes payment of all necessary fees, including licence renewal, within the stipulated period in line with the guidelines; rendition of returns in line with the guidelines; compliance with guidelines, directives and circulars of the CBN, particularly Anti-Money Laundering (AML); countering the Financing of Terrorism (CFT) and Counter-Proliferation Financing (CPF) regulations.

Nigeria is facing tough economic realities with the inflation rate nearing 30%. Experts blamed the current bleeding economy on the eventual removal of costly but necessary subsidies on fuel. The poor performance of the Naira against the US dollar has added to the woes of the country that relies heavily on importation to meet its domestic needs.

In recent times, the government cracked down heavily on the activities of the cryptocurrency trading website, Binance.

Presidential spokesman, Bayo Onanuga, explained that the activities of the firm will destroy the Nigerian economy if left alone to operate at will.

He noted that this can be done by indiscriminately fixing foreign exchange rates thereby hijacking the constitutional duties of the Central Bank of Nigeria.

He said on Channels Television, “We have saboteurs. Look at what Binance is doing to our economy. That is why the government moved against Binance. Some people sit down using the cyberspace to dictate even our exchange rate, hijacking the role of the CBN.

“They just sit down and fix anything they like. It’s a sabotage and we are trying to prevent that from happening henceforth.”

Onanuga further called on Nigerians to halt patronising the parallel market for Forex rates, adding that the website of the apex bank is the only legal platform.