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CBN Unveils Sweeping Changes In Draft Guidelines For BDCs

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The Central Bank of Nigeria (CBN) through its Financial Policy & Regulation Department, has issued a draft revised Regulatory and Supervisory Guidelines for Bureau de Change (BDC) Operations which will require amongst others that sellers of $10,000 and above to BDCs will have to declare the source of foreign exchange.

The circular with reference number FPR/DIR/PUB/CIR/0021006, dated was copied to all bureau de change operators and stakeholders in the financial services industry for comments and inputs.

The draft guidelines also proposed a significant enhancement to the regulatory framework for the operations of Bureau De Change as part of ongoing reforms of the Nigerian foreign exchange market.

The draft notes that 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.

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It further proposes that customers may transfer foreign currencies from their individual domiciliary accounts with Nigerian banks to BDCs.

According to the proposition, 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.

Where such a card is issued, relevant maximum credit and cumulative limits, in line with relevant Know Your Customer requirements, shall apply.

Also, “A beneficiary of BTA or PTA shall receive up to 25 per cent of the foreign currency in cash. In other words, at least 75 per cent of any sale of foreign currency by a BDC shall be transferred to the customer electronically (to the customer’s Nigerian domiciliary account or prepaid card).

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“Notwithstanding the proposition above, a beneficiary of BTA or PTA of the equivalent of USD500 or less may receive his/her BTA or PTA in cash.”

Under the draft guideline, the BDCs are not permitted to, amongst other things; engage in Street-trading of foreign currency, maintaining any type of account for any member of the public, among others.

The CBN requested that comments be forwarded to the Director, Financial Policy and Regulation Department, Central Bank of Nigeria, Abuja with soft copies mailed to PolicyandRegulationDivisioncbn.qpv.no by March 4, 2024.

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UK Court Jails 35-yr-old Nigerians 10 Yrs After Brutal R3pe Of Woman In Nottingham

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By Kayode Sanni-Arewa

A 35-year-old Nigerian, Timilehin Olatunji, has been sentenced to 10 years in prison for the rape of a woman at a property in Nottingham during the early hours of September 29, 2024.

It was gathered that the victim courageously used a mobile app to record audio evidence of the attack before escaping and reporting the crime to Nottinghamshire Police.

Following the report, Olatunji was arrested shortly afterward and subsequently charged with three counts of rape.

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He pleaded guilty to the charges.

During the sentencing at Nottingham Crown Court on Wednesday, January 15, Judge Michael Auty described the assault as “despicable and vile” and “beyond rational understanding.”

He condemned Olatunji’s actions, saying: “You took it upon yourself to rape her in the most brutal, sadistic, and cruel way imaginable.”

Olatunji has also been placed on the Sex Offenders’ Register for life and is subject to an indefinite restraining order to protect the victim.

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In a statement released on Thursday, Nottinghamshire Police commended the victim’s bravery and reaffirmed their commitment to supporting survivors of sexual violence.

Detective Constable Emily Bucklow, of Nottinghamshire Police, said: “The recorded evidence of Olatunji’s horrific assault made this case particularly harrowing for all the officers who worked on it.

“It is one of the most upsetting things I have had to listen to in my policing career and only enhances my admiration for this victim’s bravery.

“I would also like to commend her for the courage she showed following Olatunji’s arrest and dignity during the subsequent court proceedings,” Emily said.

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The detective said, “He subjected her to a violent, degrading and sustained ordeal but she has shown immense bravery to help us bring him to justice.

“I hope the sentence handed down will at least provide some closure to what must have been an acutely distressing period of her life.

“I also hope the sentencing of Olatunji will encourage other victims of rape and serious sexual assault to have the confidence to come forward and report offenders.

“Our experienced officers are here to help the victims of appalling crimes like this,” Emily added.

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Tinubu Exhausted N9.74bn Supplying Rice, Beans Palliatives To Nigerians In 2024 – Report

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By Kayode Sanni-Arewa

The President Bola Tinubu-led Nigerian government reportedly spent a total of N9.74billion for the procurement and distribution of food items as part of its efforts to mitigate the nationwide food crisis in 2024.

This was revealed by BudgIT on its platform, GovSpend, a civic-tech organisation advocating for transparency and accountability.

According to the report, a large portion of the funds was dedicated to supplying essential food staples such as rice, beans, maize, and other commodities.

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The report showed that the Federal Ministry of Agriculture and Food Security led the initiatives, making multiple payments to contractors responsible for the emergency supply of palliative foodstuffs to various federal constituencies.

Key transactions included payments for the delivery of rice, beans, and garri to help alleviate hunger in vulnerable communities.
Payments, averaging around N85.45 million per constituency, were made between February and November 2024 across different regions.

Data from the platform reportedly indicate that N85,454,545.46 was spent on each constituency in states including Kano, Ogun, Osun, Akwa Ibom, Cross River, Adamawa, Kaduna, Jigawa, Ekiti, Oyo, Lagos, Bauchi, Rivers, Borno, Sokoto, and Enugu, bringing the total expenditure to N9.74 billion.

However, despite the significant financial outlay, there are concerns about the programme’s effectiveness in addressing the root causes of food insecurity.

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Shedrach Israel, an economist at Lotus Beta Analytics, argued that food palliatives alone cannot solve Nigeria’s food crisis, according to PUNCH.

“While food palliatives are essential for addressing immediate hunger, they fail to address the underlying systemic issues, such as inflation and the deficiencies in the agricultural sector,” Israel said.

Israel added, “We need long-term economic policies focused on boosting local agricultural productivity and improving distribution networks to reduce dependence on external food aid.”
Israel further said that the N9.74 billion spent on palliatives could have been better invested in agricultural innovation and infrastructure development, which would provide sustainable solutions to food insecurity.
Also, La’ah Dauda, an agricultural economist based in Kaduna, emphasised the need for a more comprehensive approach to addressing the food crisis.

“The government’s reliance on palliatives is a short-term fix to a deeper agricultural crisis. While necessary, these measures do not tackle critical issues like inadequate irrigation, poor storage facilities, and limited market access, all of which continue to impede agricultural productivity across the country,” he said.

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SEE Dollar (USD) to Naira Black Market Rate Today January 18, 2025 Aboki

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By Kayode Sanni-Arewa

As of January 18, 2025, the Nigerian Naira (NGN) has continued to experience some level of volatility against the US Dollar (USD), while this has been the norm for decades now, this largely to some extent reflects the ongoing economic challenges.

See the Naira performance across various currencies

A quick check at the parallel market at Abuja Zone 4 market,as at January 18, 2025 , the black market exchange rate stands firmly at approximately ₦ 1,682.00 per USD. This means if you want to buy a dollar now, it is ₦ 1,682.00 while if you want to sell it is approximately ₦ 1,670.00 .

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Please be aware that the parallel market or the black market rates are mostly and notably higher compared with what you get from the official market or CBN rate

Dollar to Naira (USD to NGN) Black Market Exchange Rate Today

Selling Rate ₦ 1,682.00

Buying Rate ₦ 1,670.00

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