BDC
Naira and Dollar exchange photot: Alfa img

Bureau De Change operators numbering 366 have been issued operational licences by the Central Bank of Nigeria between January 2018 and May 31, 2018, according to a new report by the apex bank.

The report on the ‘Functions, operational guidelines and compliance for BDC operations in Nigeria’ was prepared by the Other Financial Institutions Supervision Department of the CBN.

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With the newly licensed operators, it said the number of registered BDCs had thus risen from 3,740 to 4,106.

The report read in part, “Total number of licensed BDCs as of 31st May, 2018 stood at 4,106. It was 3,740 as of 31st December, 2017, signifying an increase of 366.”

According to the report, Lagos has the highest number of the BDCs with 2,123, followed by Kano, Abuja and Anambra states with 806, 745 and 171, respectively.

Only 261 BDCs were registered in the remaining states, according to the report.

The apex bank noted that several unlicensed BDCs were still operating illegally on the black market.

As part of its regulatory duties, it said that it would continue to ensure effective supervision and apply sanctions on BDCs that contravened the laws.

It maintained that the BDC subsector remained a critical segment of the foreign exchange market which had served as a veritable tool for contemporary exchange rate management in Nigeria.

The report stated, “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.”