Up 366 Bureau De Change operators have been granted operational licences by the Central Bank of Nigeria CBN) between January 2018 and May 31, 2018.
A new report by the apex bank on the ‘Functions, operational guidelines and compliance for BDC operations in Nigeria’ as prepared by the Other Financial Institutions Supervision Department of the CBN shows with the newly licensed operators, the number of registered BDCs has risen from 3,740 to 4,106.
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 CBN noted that several unlicensed BDCs were still operating illegally in 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 stated 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.”
It stated that there was a need for the Association of Bureaux de Change Operators of Nigeria to check the illegal activities of street traders.
The CBN urged ABCON to ensure more effective self regulation, develop and implement a code of conduct for members to promote ethical practices and transparency in the industry.