Economy
CBN restricts Dollar from BDC to $10k for school fees, $5k for medicare
![](https://naijablitznews.com/wp-content/uploads/2024/02/CBN.jpg)
The Central Bank of Nigeria has placed limits on the foreign exchange sales by Bureau De Change (BDC) operators in a new document titled: “Revised Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria”.
The circular with Ref: FPR/DIR/PUB/CIR/002/006 dated February 23, 2024 and titled: “Revised Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria – Exposure Draft,” was signed by the Director, Financial Policy and Regulation Department, Mr Haruna B. Mustafa.
In the reversed regulatory guidelines, CBN stated that BDCs may sell foreign currency in the equivalent of $4,000 and $5,000 for personal travel allowance (PTA) or business travel allowance (BTA), respectively, to an individual once every six months.
According to the Bankers’ bank the sale of foreign currencies to the intending travellers would have to be accompanied with their bank verification number (BVN) or tax identification number (TIN), duly completed e-form, valid international passport, valid visa, as well as valid international return ticket.
In addition, for BTA, the apex bank said letter of request from the corporate body stating the purpose of the visit addressed to the processing BDC, as well as certificate of the business registration or incorporation, must be submitted by customers.
Also, the CBN mandated that letter of invitation from the customer’s overseas business partner and tax clearance certificate, be presented by the customers.
“The amount of foreign currency sold and date of sale shall be endorsed on the passport. A photocopy of the documents, forex endorsement page and sales receipt shall be filed in a sequential order by the BDC,” CBN said.
CBN also said BDCs may sell foreign currency up to the equivalent of $5,000 to a customer for medical bills once a year.
Such bill, CBN said, shall be transferred from the BDC’s domiciliary account with a Nigerian bank.
“It shall be paid directly to the hospital and supported by valid visa, duly completed e-Form A, letter of reference from a specialist doctor, or a specialist hospital in Nigeria, and valid international passport,” the apex bank said.
Other necessary documents listed by the financial regulator include valid air ticket, and letter issued by the overseas specialist doctor stating the cost of treatment.
According to the apex bank, BDCs may sell foreign currency up to the equivalent of $10,000 to a customer for school fees once a year.
“Such fee, which shall be transferred from the BDC’s domiciliary account with a Nigerian bank, shall be paid directly to the school and supported by the following documents: duly completed e-Form A, evidence of admission/course programme, valid air ticket, and letter issued by the overseas specialist doctor stating the cost of treatment, and school bill/invoice,” CBN said.
“For post-graduate studies, photocopy of first degree certificate or its equivalent/certified true copy of statement of result by the awarding institution.
“The CBN may review the amounts and frequencies for sale of foreign exchange from time to time.”
A beneficiary of foreign currency sale may receive up to 25 percent of the foreign currency in cash, according to the CBN, and the remaining 75 percent shall be transferred to the customer electronically (to the customer’s Nigerian domiciliary account or prepaid travel card).
CBN, However, noted that the guidelines significantly enhances the regulatory framework for the operations of Bureau De Change as part of ongoing reforms of the Nigerian foreign exchange market.
The letter partly read: “Pursuant to the powers conferred under Section 56 of the Banks and Other Financial Institutions Act, 2020 (BOFIA), the Central Bank of Nigeria (CBN) hereby issues this draft revised Regulatory and Supervisory Guidelines for Bureau de Change (BDC) Operations in Nigeria for stakeholder comments and/or inputs.
“The Guidelines significantly enhances the regulatory framework for the operations of Bureau De Change as part of ongoing reforms of the Nigerian foreign exchange market. The Guidelines revises the permissible activities, licensing requirements, corporate governance, and Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) provisions for BDCs.
“It also sets out new record-keeping and reporting requirements, among others,” the circular indicated. It advised that every comments should be directed to the Director, Financial Policy and Regulation Department Central Bank of Nigeria, Abuja with soft copies mailed to [email protected] by March 4, 2024.
In the draft reversed guidelines, the apex bank stated that “No person shall carry on the business of BDC in Nigeria except with the prior authorization of the CBN.”
It defined a BDC as a company licensed by the CBN to carry on only retail foreign exchange business in Nigeria.
On non-eligible promoters, the CBN listed categories of people and organisations that shall not be allowed to participate in the ownership of BDCs, directly or indirectly among whom are:
“Commercial, merchant, non-interest and payment service banks; Other Financial Institutions (OFIs), including holding companies and payment service providers and Serving staff of financial services regulatory and supervisory agencies.
“Serving staff of regulated financial services providers; Governments at all levels; Public officers as defined in 5th Schedule Part IV of the Constitution of the Federal Republic of Nigeria.
“Non Governmental organizations; Cooperative societies; Charitable organizations; Academic and religious institutions; Non-Nigerian non-resident natural persons; Non-Nigerian resident natural persons and Non-resident non-regulated companies.
“Telecommunication services providers; Sanctioned individuals and entities; A shareholder in another BDC (whether directly or indirectly); Any other entity that the CBN may from time to time designate.”
Under Permissible Activities; the apex bank stated that a BDC may: “Acquire foreign currency from the sources listed in Section 4.0; Sell foreign exchange as detailed in Section 5.0; Open foreign currency and naira accounts with Commercial or Non-Interest Banks (CNIBs); Collaborate with their banks to issue prepaid cards. And Serve as cash-out points for International Money Transfer Operators (IMTOs).”
On the Non-Permissible Activities, the CBN stated that a BDC or its franchisee shall not engage in –
“Street-trading; Maintaining any type of account for any member of the public, including accepting any asset for safe keeping/custody.
“Taking deposits from or granting loans to members of the public in any currency and in any form; International outward transfers; Retail sale of foreign currencies to non-individuals, except for BTA
“Engaging in off-shore business or maintaining foreign correspondent relationship with any foreign establishment. Opening or maintaining any account with any bank or financial institution outside
Nigeria. Acting as custodian of foreign currency on behalf of customers.
“International inward transfers, except for operators that serve as cash-out points for IMTOs. Borrowing sums which in aggregate exceed the equivalent of 30 per cent of its shareholders’ funds unimpaired by losses, in the BDC’s audited financial statements of the preceding year.
“Engaging in forwards, futures, options, or other derivative/speculative transactions. Obtaining foreign exchange from sources other than those listed in Section 4.0. Granting of loans and advances in any currency. Selling foreign exchange on credit to any customer. Engaging in any trade-related import activities.
“Serving as payment or collection agents on behalf of customers. Dealing in gold or other precious metals. Carrying on capital market, insurance and/or pension sector activities. Establishing subsidiaries.
Any foreign exchange transaction that involves illicit financial flows.
“Financing of political activities. All other businesses not expressly permitted by this Guidelines. Any other activity as may from time to time be termed “non-permissible” by the CBN.
On the Sources of Foreign Currencies; the apex bank listed the following as conditions that shall apply for the sourcing of foreign currencies by BDCs:
“i. A BDC may source foreign currency from: a. Tourists. b. Returnees from the diaspora. c. Expatriates with foreign exchange inflows from work, travel, investment or their domiciliary accounts.
“d. Residents with foreign exchange inflows from work, travel, investment or their domiciliary accounts. e. International Money Transfer Operators (IMTOs),
f. Embassies. g. Hotels that are authorised buyers of foreign currencies. h. The Nigerian Foreign Exchange Market (NFEM). i. Any other source that the CBN may specify.”
“ii. 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.”
Economy
CBN sells $20,000 to BDCs at 1,580
![](https://naijablitznews.com/wp-content/uploads/2024/02/CBN.jpg)
The Central Bank of Nigeria has announced the sale of dollars to Bureau De Change operators.
This was disclosed by the apex bank in a statement signed by the Acting Director of Trade and Exchange Department, Dr W. J Kanya, on Friday.
The latest intervention of the central bank comes days after the Nigerian naira has been taking a beating at both the official and parallel market where it has depreciated to about 1,670/$ on Friday.
The circular partly read, “This is to inform the Bureau De Change Operators and the general public that we are providing more liquidity into the market.
“To this end, the CBN has approved the sale of US$20,000.00 to each eligible BDC at the rate of N1,580/$. This is to meet the demand for invisible transactions.”
The bank said the BDCs are allowed to sell to eligible end-users at a margin not more than one per cent above the purchase rate from CBN.
Eligible BDCs interested in this transaction were advised to make the Naira payment to the CBN.
Economy
SEE Black Market Dollar (USD) To Naira (NGN) Exchange Rate Today 6th September 2024
![](https://naijablitznews.com/wp-content/uploads/2024/04/Naira.webp)
By Mario Deepromoter
The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N1635 and sell at N1645 on Friday 6th September 2024, according to sources at Bureau De Change (BDC).
Black market dollar to Naira exchange rate on Friday 6th September 2024 can be accessed below.
The official naira black market exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC), and CBN rates. Please note that the exchange rate is subject to hourly fluctuations influenced by the supply and demand of dollars in the market. As of now, you can purchase 1 dollar at a certain rate now, however, it’s important to keep in mind that the rate can shift (either upwards or downwards) within hours.
How much is a dollar to naira today in the black market?
Dollar to naira exchange rate today black market (Aboki dollar rate):
The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N1635 and sell at N1645 on Friday 6th September 2024, according to sources at Bureau De Change (BDC).
Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.
Dollar to Naira Black Market Rate Today
Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Buying Rate N1645
Selling Rate N1635
Dollar to Naira CBN Rate Today
Dollar to Naira (USD to NGN) CBN Rate Today
Buying Rate N1625
Selling Rate N1630
Please note that the rates you buy or sell forex may be different from what is captured in this article because prices vary.
Economy
NNPC Announces Date To Start Lifting Petrol From Dangote Refinery
![](https://naijablitznews.com/wp-content/uploads/2024/08/Dangote-Refinery-1.jpeg)
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has revealed that it will start lifting petrol from the Dangote Refinery from September 15th.
This is coming a few hours after the Refinery debunked reports claiming that the NNPCL had started the lifting of its petrol and selling for N897 per litre.
Speaking on TVC News’ “Journalists’ Hangout” show on Thursday, the Executive Vice President of Downstream, NNPC Ltd., Mr. Adedapo Segun explained that the corporation is awaiting the September 15 deadline provided by the Refinery to start lifting petrol.
Segun also said that foreign exchange (forex) illiquidity has been a significant factor influencing the fluctuation in prices of Premium Motor Spirit (PMS), which are governed by unrestricted free market forces, as provided for in the Petroleum Industry Act (PIA), 2021.
He revealed that the current fuel scarcity was expected to “subside in a few days as more stations recalibrate and begin selling PMS.”
He said Section 205 of the PIA, which established NNPC Ltd., stipulated that petroleum prices were determined by unrestricted free market forces.
According to him, “The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd. Additionally, the exchange rate plays a significant role in influencing these prices.”
Segun, who said no right-thinking individual would be comfortable with the current fuel scarcity, added that the NNPC Ltd. has nearly a thousand filling stations nationwide and was collaborating with marketers to “ensure that stations open early, close late, in order to maintain adequate fuel supply to meet the needs of Nigerians.”
He assured Nigerians: “We are also engaging relevant authorities to ensure products diversions are prevented and timely deliveries to all stations are ensured. The scarcity should ease in the next few days as more stations recalibrate and begin operations.”
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