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CBN Issues Approved Guidelines For BDCs, Operators Get December Deadline To Reapply
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.
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.
“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.”
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.
“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.
CBN Governor, Olayemi Cardoso, on Tuesday, attributed the instability in the foreign exchange market to “seasonal demands”.
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Customs disolves border patrol team amidst smuggling, brutality allegations
The Nigeria Customs Service (NCS) has announced the dissolution of its Joint Border Patrol Team (JBPT).
The Public Relations Officer of the NCS, Abdullahi Maiwada, in a statement Tuesday, said the decision was made after due consultation with the office of the National Security Adviser (ONSA).
The House of Representatives had, on December 11, mandated its Committees on Customs and Excise, Defence, to investigate the operations and activities of the NCS across the nation’s borders over alleged complicity in aiding smuggling and involvement in brutality against Nigerians.
The committees were also directed to examine the role of military personnel attached to Customs patrols in order to ensure their operations comply with legal frameworks and human rights standards.
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The resolutions followed the adoption of a motion of urgent public importance by Rep. Sesi Whingan who alleged that rather than prevent smuggling, recent reports showed that Customs’ personnel across the borders were aiding and abetting smuggling.
But the Customs spokesman explained yesterday that the dissolution of the joint border patrol team was part of the NCS’ efforts to strengthen border management and reinvigorate its 2025 enforcement strategy.
The JBPT, coordinated by the ONSA, evolved from an ex-swift response team to become a tripartite operation comprising Benin Republic, Niger Republic and Nigeria.
The patrol team was tasked with combating smuggling, irregular migration, and other transnational organised crimes along the nations’ borders, among others.
Maiwada said the team’s dissolution would not compromise border security or trade facilitation, but represents a significant step towards modernising Customs’ operations, improving trade compliance and strengthening national security.
The NCS said the move was part of the organisation’s ‘2025 enforcement strategy’.
“This strategy is aimed at removing bottlenecks associated with trade, strengthening border security, combating smuggling, and facilitating legitimate trade,” he said.
Maiwada also disclosed that Adewale Adeniyi, NCS Comptroller-General, had approved the reduction of customs checkpoints across the country to streamline its operations and to ease movement of goods and persons.
According to the statement, Adeniyi said the NCS would shift reliance to intelligence.
“Moving forward, customs operations will rely more on actionable intelligence and strategic risk management frameworks to enhance efficiency and effectiveness,” the statement quoted the CG as saying.
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Nigerians Are In Pains Because We Chose Darkness In Place Of Light — Bishop Kukah
The Catholic Bishop of Sokoto Diocese, Matthew Kukah, has stated that Nigerians are pains because they refused to be liberated from “darkness.”
The priest said this in his Christmas message at the Holy Family Cathedral Catholic Church, Sokoto Diocese on Tuesday night.
He emphasised that embracing transparency, accountability, and integrity in public service, politics, and individual conduct could significantly improve the country’s current state.
He said, “Nigeria’s lack of visible and measurable progress is tied to the fact that we have chosen darkness rather than light.
“Imagine if we let the light shine on our public service, on our politics, on our individual, community, and national life, and on our public institutions. Imagine what Nigeria would be like if we chose light instead of darkness.
“They will know we are Christians by our love,” highlighting that the country’s journey to greatness remains constrained by ethnicity, nepotism, and greed.
“We are still unable to embrace the ideals of our national anthem that says: ‘Though tribe and tongue may differ, in brotherhood we stand.’ Diversity is a gift from God. Let us use it effectively as a tool for national mobilization and cohesion,” he advised.
Kukah also lauded the passage of the “Not Too Young to Run Bill” in 2018, which opened doors for increased youth participation in politics.
However, he acknowledged the ongoing challenges, such as the high costs of political participation and issues of internal democracy, which still hinder young people’s active engagement.
He also commended the enactment of the Student Loan Act 2024 and the establishment of the Nigerian Education Loan Fund by the federal government.
These initiatives, he noted, have the potential to expand opportunities for Nigerian youth, including those pursuing vocational and technical skills.
“It is significant that the Act does not limit access to university students alone. We hope this project will be free of bureaucratic bottlenecks and favoritism, ensuring that poverty does not exclude anyone from receiving a good education,” Kukah said.
He encouraged the youth to take full advantage of these opportunities while also expressing concern about the ongoing security challenges in the country, which he described as a persistent obstacle to national stability.
Kukah, however, called on all Nigerians to choose the path of light, unity, and love, stressing that these values are essential for the nation’s progress and development.
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Omole celebrates christian faithful, says this is time for renewal of faith in nation and state
As Christians across the globe celebrate the birth of Jesus Christ, the Foundation of christianity today, the Coordinator of the Osun PDP Dynamic Support Group, Comrade Omole Oluwasegun has called on Christians in Osun State and Nigerians as a whole to renew their faith in our country, insisting that our nation must be great again.
Omole noted that Nigeria is blessed with enormous material and human resources.
He said Nigerians should believe in the greatness of our nation and support the Government to achieve the required dividends.
He called on Christians to use the occasion of the birth of Jesus Christ to rededicate themselves to the advancement of the ideals of nation building. He also called for prayers against societal ills such as terrorism, banditry and kidnapping.
Omole said Nigeria and its leaders need all the prayers and support at this time to positively change the fortunes of our fatherland.
“May this Christmas present for you an opportunity to renew and grow your faith in God and our nation, Nigeria. And may you and your family be blessed beyond measure”, he prayed.
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