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CBN Issues Approved Guidelines For BDCs, Operators Get December Deadline To Reapply

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The Central Bank of Nigeria (CBN) has issued its approved guidelines to regulate the activities of Bureau de Change (BDC) operators in the country.

In its new circular released on Wednesday, the minimum capital base for Tier-1 BDCs is N2bn while that of Tier-1 is set at N500m. Also, the mandatory caution deposit of N200m for tier-1 BDC licence holders was removed while the N50m for tier-2 licence holders was waived.

In the circular to BDCs, CBN’s Director of Financial Policy and Regulation, Haruna Mustafa, said the approved guidelines take effect from June 3, 2024.

The apex bank directed existing BDCs to reapply for new licenses and meet the minimum capital requirements for the license category applied for within six months from June 3, 2024.

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The CBN banned BDC operators from street trading, international outward transfers, financing of political activities, dealing in gold or other precious metals, dealing in crypto assets or any other virtual assets, amongst others.

The CBN insisted that BDCs must channel their transactions through digital means once it is above USD500.

“As part of reforms to re-position the Bureau De Change (BDC) sub-sector to play its envisioned role in the foreign exchange market in Nigeria, the Central Bank of Nigeria (CBN) issued the Draft Operational Guidelines for BDC Operations in Nigeria in February 2024, for stakeholder comments/inputs,” the circular partly read.

“Following the conclusion of the stakeholder consultations and in the exercise of the powers conferred on it by Section 56 of the Banks and Other Financial Institutions Act (BOFIA) 2020, the CBN hereby issues the attached Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria 2024 for compliance by all operators and promoters of proposed BDCs in Nigeria.

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“The guidelines, amongst others, introduce new licensing requirements and categories of BDCs as well as revise the permissible activities, financial requirements, corporate governance requirements and AML/CFT/CPF provisions for BDCs.

“All existing BDCs shall: Re-apply for a new license according to any of the Tiers or license categories of their choice as provided in the Guidelines.

“Meet the minimum capital requirements for the license category applied for within six (6) months from the effective date of the Guidelines.

“Applicants for New BDC License Applicants for a new BDC license are required to meet the conditions for the grant of license in accordance with the Tier or category of BDC chosen as stipulated in the Guidelines. Receipt and processing of applications for license shall commence from the effective date of the Guidelines.”

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The CBN insisted that BDCs must channel their transactions through digital means once it is above USD500.

The regulations stated: “The following conditions shall apply for the sourcing of foreign currencies by BDCs:

“i. Sellers of the equivalent of USD10,000 and above to a BDC are required to declare the source of the foreign exchange and comply with all AML/CFT/CPF regulations and foreign exchange laws and regulations.

“ii. Customers may sell foreign currencies in their individual domiciliary accounts with Nigerian banks to BDCs. All such sales shall be credited to the BDC’s Nigerian domiciliary account.

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“iii. Payments for all digital/transfer purchases of foreign currency by a BDC shall be by transfer to the customer’s Naira account. If the customer is non-resident (whether Nigerian or not), a BDC may issue the customer a prepaid NGN card. Where such a card is issued, relevant maximum credit and cumulative limits, in line with relevant Know Your Customer (KYC) requirements, shall apply.

“iv. Payments to customers for cash purchases of foreign currency, the equivalent of above USD500, shall be by transfer to the customer’s Naira bank account. If the customer is non-resident (whether Nigerian or not), a BDC shall issue the customer a prepaid NGN card.

“v. Payments to customers for cash purchases of foreign currency of the equivalent of USD500 and below may be made in cash.”

The Nigerian currency has experienced an unprecedented volatility in the last one year since the assumption of President Bola Tinubu. The Naira, which was around N700/1$ in May 2023, descended to an all-time low of about N1,900/1$ in February 2024 before it climbed in April to about N1,100/$1 and then embarked on a sudden descent to N1,600/$1 in May 2024.

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CBN Governor, Olayemi Cardoso, on Tuesday, attributed the instability in the foreign exchange market to “seasonal demands”.

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Troops Repel Terrorists’ Attack on Military Post in North-east, Eliminate 12 ISWAP/Boko Haram Fighters

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Troops of the Joint Task Force (North East), Operation Hadin Kai (OPHK), have eliminated 12 ISWAP and Boko Haram fighters during a failed attack on a military position in the Kirawa axis of Sector 1 OPHK Area of Responsibility in the early hours of May 22, 2026.

The operation was carried out under Operation Desert Sanity and Siege Operations after suspected terrorists attempted to infiltrate positions occupied by troops of the 153 Task Force Battalion and other allied forces along the Nigeria-Cameroon border axis.

According to the Media Information Officer of Joint Task Force (North East) Operation Hadin Kai, Lieutenant Colonel Sani Uba, the attack was promptly detected and effectively repelled by troops and members of the Civilian Joint Task Force (CJTF), who responded with superior firepower and maintained control of their positions throughout the encounter.

The terrorists were subsequently forced to abandon the mission and retreat towards the Cameroon axis after suffering heavy casualties during the gun battle.

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“Intelligence, Surveillance, and Reconnaissance assets, as well as platforms of the Air Component of OPHK and partner forces, provided coordinated support during the operation.

“Following the engagement, troops confirmed the neutralisation of 12 terrorists, while several others reportedly escaped with gunshot wounds, as evidenced by blood trails along their withdrawal routes.

“Recovered items included AK-47 rifles, rocket-propelled grenade systems, ammunition, and a PKT machine gun, further weakening the operational capability of the insurgents in the area,” the statement said.

Troops of OPHK, working alongside the Civilian Joint Task Force, have continued exploitation operations to track fleeing terrorists and recover additional weapons and equipment, while maintaining heightened vigilance across the area.

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The Joint Task Force reaffirmed its commitment to sustaining pressure on terrorist groups until they are completely neutralised across the theatre of operations.

The military high command also commended the troops for their gallantry, professionalism, and swift response, which it described as the third successful operation recorded within the week, urging them to sustain the operational momentum in the interest of national security.

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Africa needs $2.8 trillion by 2030 to meet climate goals — Report

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Africa will require an estimated $2.8 trillion between 2020 and 2030 to effectively tackle climate change and meet its commitments under the Paris Agreement.

A new report policy analysis by Harrison Rehoboth Consulting, states that the continent needs about $277 billion annually to fund climate adaptation and mitigation projects.

The investment is aimed at reducing the impact of floods, droughts, desertification, and other environmental challenges threatening livelihoods across the region.

Femi Sekoni, spokesperson for Harrison Rehoboth Consulting, said the funding is critical to strengthen infrastructure, protect vulnerable communities, improve food security, expand renewable energy, and support a transition to cleaner, more sustainable economies.

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Despite the growing climate crisis, the report notes that Africa remains heavily dependent on foreign sources for climate financing. Domestic investors contribute only a small portion of available funds.

Local institutions including banks, pension funds, insurance firms, and private investors account for roughly 10% of climate finance flowing into the continent. International organisations and development partners provide the larger share.

Uneven distribution and structural barriers

Climate financing across Africa remains unevenly distributed. Countries with stronger financial systems and investment structures—South Africa, Egypt, Nigeria, Morocco, and Kenya—attract a significant percentage of available funding.

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Many other African countries facing severe climate threats struggle to attract large-scale investment.

The report cites weak institutions, limited project preparation capacity, policy uncertainties, and concerns over investment risk as key barriers.

The analysis also raises concerns about the structure of climate financing available to African countries.

A large portion comes in the form of loans rather than grants or concessional financing, which could worsen debt burdens for nations already facing rising debt-servicing obligations and economic pressure.

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Climate adaptation projects such as flood control systems, drought resilience programmes, and coastal protection infrastructure often provide social and environmental benefits but generate little direct revenue.

This makes loan repayment difficult for governments.

The report notes that rising debt levels have fueled global discussions around climate justice and the need for wealthier nations to provide more grant-based support to vulnerable countries facing the harsh effects of climate change.

The report acknowledges efforts by institutions such as the African Development Bank and some African countries, including Rwanda, Kenya, Senegal, Egypt, and South Africa, to expand climate investment initiatives and develop financing frameworks capable of attracting private investors.

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However, Harrison Rehoboth Consulting stresses that Africa’s climate finance gap cannot be closed through international promises alone.

It calls for stronger domestic financial systems, improved governance, better project planning, and reforms in global financial institutions to make climate funding more accessible.

Key recommendations include: increasing concessional financing and grants for adaptation projects; improving collaboration between governments and private investors; strengthening policies that encourage long-term investment in climate and infrastructure projects; and building domestic financial capacity to reduce over-reliance on external funding.

The report concludes that closing Africa’s climate finance gap will require coordinated action at national, regional, and global levels to ensure funding reaches the countries and communities most exposed to climate risk.

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Obi meets S’African leaders over xenophobic attacks on Nigerians

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Presidential aspirant in the Nigerian Democratic Congress (NDC), Peter Obi, has intensified efforts to protect Nigerians in South Africa following new reports of xenophobic attacks and rising depression among victims.

Obi made his involvement public in a Facebook post on Saturday, detailing a series of high-level meetings with South African government officials and political party leaders.

“After speaking with Nigerians in Cape Town yesterday, I was able to have meaningful discussions this morning with three South African ministers and political party leaders regarding the ongoing challenges related to immigration, regional collaboration, and fostering peaceful coexistence,” Obi wrote.

He revealed that he met with Mr. Leon Schreiber, South Africa’s Minister of Home Affairs and a prominent figure in the Democratic Alliance; Mr. Velenkosini Hlabisa, Minister of Cooperative Governance and Traditional Affairs and leader of the Inkatha Freedom Party (IFP); and Mr. Gayton McKenzie, Minister of Sports, Arts and Culture and leader of the Patriotic Alliance (PA).

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Obi described the conversations as “productive and candid,” with a focus on migration, economic strains, youth unemployment, security issues, and rising tensions faced by African foreigners in South Africa.

He emphasised that Nigeria and South Africa—as two of the continent’s most prominent nations—must enhance dialogue and seek solutions based on justice, mutual respect, and the rule of law.

“In challenging times, leaders and citizens alike need to demonstrate responsible leadership, compassion, and restraint,” he said.

The discussions also stressed the importance of law-abiding behavior, avoiding violence, resisting hate or provocation, and allowing lawful institutions to address grievances through democratic processes.

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“The progress of Africa hinges on our ability to create unity, foster economic inclusivity, invest in our communities, and uphold the dignity of every African, no matter where they live,” Obi added.

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