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Tag: cbn

  • Naira gains 20% on CBN’s noose tightening

    Naira gains 20% on CBN’s noose tightening

    • Currency likely to appreciate, say experts

    The naira has gained more than 20 per cent in a major recovery that had seen the currency trading mostly positive in the past eight days.

    After falling to a low of N1, 915 per dollar on February 21, this year amid intense speculations, a raft of tweaking of policies and enforcements by the Central Bank of Nigeria (CBN) cut the currency speculation and racketeering.

    The naira started a recovery on February 22, amid optimism that ongoing policy initiatives by the apex bank and the overall macroeconomic outlook would further strengthen the national currency over the medium to long-term.

    At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira opened this week positive, appreciating by 0.91 per cent to N1, 534 per dollar. It however depreciated yesterday by 4.45 per cent to N1,602.43 per dollar.

    At the parallel market, the naira strengthened by 1.64 per cent to N1,623 per dollar, with the near convergence underlining increasing stability of the forex market. 

    The naira recovery came as the country’s foreign exchange (forex) reserves also continued to improve. Nigeria’s forex reserves increased by some $200.45 million to $33.72 billion at the weekend.

    Read Also: CBN warns Nigeria, others of new debt risks

    Market pundits were unanimous that the currency rebound was due policy measures by the CBN, especially the flexibility of the apex bank to quickly monitor, evaluate and realign its policies.

    Bismarck Rewane’s Financial Derivatives Company (FDC) yesterday said the naira recovery may be sustained, citing recent decisions by the apex bank.

    According to FDC, with last week’s adjustment of the benchmark interest rate, Monetary Policy rate (MPR), by 400 basis points to 22.75 per cent, the country’s inflationary pressures are likely to be tamed in the near term.

    “A lower inflation rate will strengthen the naira further and support its appreciation trend,” FDC stated.

    Cordros Capital Group stated that the pace of the reforms by the apex bank was encouraging, raising possibility of a stronger naira overtime.

    “We are encouraged by the pace of reforms within the market as well as the renewed interventions by the apex bank. In our view, following through with recently implemented reforms alongside continued efforts to clear the forex backlog may lead to improved liquidity over the medium-term,” Cordros Capital stated.

  • $1billion donation; Support the new CBN

    $1billion donation; Support the new CBN

    The donation of $1billion by Dr Ruth Gottesman, from her husband’s investments with Warren Buffet’s Berkshire Hathaway is great and a greater lesson in responsibility of billionaires everywhere especially in needy environments. Multibillion donations are an integral part of developed countries. The US thrives on such legacy donations and investment supporting education and health. Hospitals and universities in the US or UK are smothered with donor names on rooms, wards, departments, buildings, structures and even entire institutions because of the financial contribution or the stature of the name, like Einstein or Soyinka. Congratulations to the $1billion donor and recipients.

    Happily, many Nigerians and Nigerian businesses have donated billions to the buildings and working of universities and departments, schools and institutions. Western education has been supported since the 18th Century in Nigeria.  The first big donation was Trenchard Hall, built by UAC in 1956, costing £61,000. The university then suggested the name of Lord Trenchard, the UAC chairman. Without UAC, would there have been a Trenchard Hall?

    After UAC, many companies and donors have contributed to education and health in Nigeria, but not enough. The Big Brother scenario could have helped youth education instead of being of questionable value while enriching MTN. Recently the family of Mama Professor Mrs Oyin Olurin @ 90, distinguished medical teacher and Ophthalmologist created a professorial chair in University of Ibadan. Years ago, the Chief Anthony A. Ani family created a professorial chair in the University of Calabar. The Zard Group and the Alakija Group and Bono donate the youth centre through Educare Trust. We can add the amazing work and the huge funds invested in private universities including Covenant, Afe Babalola, Kola Daisi universities. Similar is expected of the multibillion Herbert Wigwe University despite the tragic passing of its funding principal.

    Dr Gottesman, a professor at Einstein College of Medicine wished to donate the money anonymously to give free tuition in perpetuity to medical students in Einstein College of Medicine, in The Bronx, a poor area. Anonymity was respectfully denied her because the donation required publicity to metamorphose into an avalanche of similar donations.

    We are all aware of the Billionaires Giving Pledge Club set up by Bill Gates and Warren Buffet and has recruited 236 billionaires willingly giving up half or more of their fortunes to charitable causes, totalling $600b+.

    Nigerian billionaires, including the ones with the president on TV, should redouble their donation skills especially where it comes to failing health and educational institutions. The donatable billions are needed now. It is no good in foreign banks. Children unfortunately generally mismanage large inherited fortunes, so donate to other, really needy, children. Large fortunes become misfortunes too often. Ask multimillion lottery winners. They are never happy till they have given it all away.  Investment in research education and health has been shown worldwide to be transformative in the job, economic and foreign exchange market. Even Nollywood and theatre need a so-far negligent government’s grant seen in the credits, like most films abroad and also billionaires’ support as they employ large numbers and are profitable.

    Many years ago, a Nigerian billionaire donated £1million to a London project. If that money had been donated to a Nigerian project imagine what value would have been added to Nigeria.

    We congratulate all Nigerian billionaires even as we raise serious questions on the morality, honesty of business dealing, banking strategies and cleanliness of their cumulative fortune. The growing collective billionaire fortune must be contrasted with Nigeria’s skyrocketing misfortune. What is the use of ‘billion-billion-billion’ when your fellow citizens are suffering hardships due to past greed and massive theft? This misfortune is manifested by the disastrously weakening naira and today’s economic hardship.

    Read Also: CBN warns Nigeria, others of new debt risks

    We have a CBN governor trying to save the raped, robbed, rubbished rag that the innocent naira has been forced to become in my working life from $1: N0.8 to $1:1,400-1,700. Nigeria now walks naked in the world’s markets, our weak naira, no protection from shame!

    The first step in the massive effort to stop the precipitous slide is on-going by CBN’s bold shutting down of the previously untouchable parallel market, a beast of no …fed illegally by Nigeria’s CBN dollars passing through or bypassing bank channels to the  abokis and their handlers and starving the black market of product-dollars. Have you tried stopping a lorry plunging downhill with failed breaks sabotaged by deliberate previous government economic manipulation and ongoing nefarious trading outside CBN?

    For those angry with this government for shutting down over 4,000 crime-driven BDCs and stopping the inflationary and unnecessary ‘middleman job’ for thousands of aboki spots, ask them to think hard. Where would Nigeria be today, if Emefiele was still CBN czar and the CBN had not stopped the naira-rot for the last 3-6 months of so? Would the naira be $1: N3,000 ???

    Once the naira free fall is stopped, the open sore of black market will close or be forced underground and not insultingly flaunted in our faces at thousands of bank, airport and street spots. Only then will we see oil corruption reduction strategies increase our oil exports and revenues.

    The funds from our oil, paid direct to CBN, will rapidly offset our huge debts, unpaid by serial renegade degenerate MDAs, government officials and politicians who should be prosecuted.

    But sadly, to recover can we endure for now, at a time politicians cannot suppress their own manifest greed over need?           

  • CBN warns Nigeria, others of new debt risks

    CBN warns Nigeria, others of new debt risks

    • It’s at high risk of debt distress, says WAIFEM

    The Central Bank of Nigeria (CBN) has issued a warning to Nigeria and other West African countries about a concerning trend in how countries borrow money.

    Traditionally, nations often relied on loans from the Paris Club, a group of creditor countries. However, the CBN has observed a significant shift towards borrowing from non-Paris Club members and private lenders, such as banks and investors who buy government bonds.

    Similarly, the West African Institute for Financial and Economic Management (WAIFEM) has also joined the fray, saying that Nigeria is at a high risk of falling into debt distress. It has therefore urged the Federal Government to look for ways of improving on its revenue generation.

    Governor of the CBN, Dr. Yemi Cardoso gave this warning yesterday in Abuja at the Joint World Bank/IMF/WAIFEM Regional Training on Medium Term Debt Management Strategy.

    Cardoso, who was represented the Director, Monetary Policy Department of the CBN, Dr. Mohammed Musa Tumala, said   while this change in countries that owe money might seem like a minor detail, he emphasized that it is a critical development with serious implications.

    Read Also: Dangote names Lagos refinery road after Wigwe

    He said the way countries manage debt owed to the Paris Club may not be as effective for these new lenders, stating  that this new debt landscape could pose a threat to financial stability and economic recovery for many countries.

    “Public debt dynamics are increasingly influenced by significant debt servicing obligations to non-Paris Club members and private lenders, including commercial banks and bond investors,” Cardoso said, adding that “ this shift in the debt structure represents a critical evolution in the global financial framework with profound ramifications for public debt management in our countries.”

  • Ex-CBN workers write governor on palliatives

    Ex-CBN workers write governor on palliatives

    Central Bank of Nigeria (CBN) pensioners have urged the governor, Yemi Cardoso, to order payment of palliative to cushion their hardship.

    They pleaded the palliative be paid with March pension.

    In a statement by Chair, Joseph Usifo and Secretary, Olufemi Adebayo, the Concerned CBN Pensioners, said their pension could no longer sustain them amid rising cost.

    “The purchasing power and real value of the pension is not up to 40 per cent of what it was by this time last year or even nine months ago,” the pensioners said.

    They noted that payment of palliative is a national policy introduced by Federal Government to cushion hardship arising from  removal of subsidy and floating of the naira.

    “As many of us are aging, frail & ailing, we can’t embark on street protests or demonstrations before being given our due, hence our appeal to you (Cardoso).

    “The CBN, as No.1 financial institution in the country, should lead the implementation of Federal Government’s policy like this one to benefit all, including pensioners.

    Read Also: Govt takes minimum wage talks to Nigerians in zones

    “Because of hardship, we plead that palliative be paid to us with March pension.”

    They noted that CBN Pensioners/Retirees Club wrote to CBN governor in October, requesting a three-month pension payment as palliative pending upward review of their pension.

    They said their demand was restated in a December 1 communique.

    “Regrettably, till this moment, there has not been a positive response from you.

    “CBN pensioners continue to die in droves under the hardship without receiving this palliative…

    “So, as a humane and compassionate leader, we await your positive response to our plea by your approving a palliative payment for us.

    “Even if it’s less than three-month pension payment we requested, it will still be appreciated.”

  • CBN slashes  FX duty rates by 5.3%

    CBN slashes  FX duty rates by 5.3%

    The Central Bank of Nigeria (CBN) has announced a further decrease in the exchange rate used to calculate import duties.

    Information about the decrease was posted on the official trade portal of the Nigeria Customs Service. 

    The reduction comes after a period of relative stability in the exchange rate between the Naira and the United States dollar.

    As of yesterday,   the rate for calculating customs duties was N1,544.081 per dollar. This represents a 5.3 percent decrease compared to the previous rate of N1,630.159  to a dollar used on Friday.

    In simpler terms, importers will now pay N86.08 less per dollar when clearing their goods through the ports.

    This change reflects the CBN’s ongoing efforts to ensure that import duties accurately reflect the prevailing exchange rate.

    By adjusting the rate downward, the CBN aims to ease the pressure on companies importing goods. The expectation is that this will lead to a more predictable and stable environment for international trade.

    On February 23, 2024, the CBN issued a circular in response to concerns from importers regarding fluctuating import duty.

    Read Also: Dangote names Lagos refinery road after Wigwe

    Key points of the CBN circular include acknowledging market volatility and price distortions due to the liberalisation of the foreign exchange market, addressing importers’ concerns about uncertainties caused by fluctuating exchange rates affecting duty calculations, and advising the NCS to use the closing FX rate on the date of opening Form M for imports as the fixed rate for duty assessment.

    This fixed rate will remain valid until the completion of import and clearance of goods.

    The measures, along with the reduced customs duty rate and clarified import duty assessment process, aim to bring stability and transparency to the import environment.

    This is expected to benefit businesses, consumers, and the overall Nigerian economy.

    Importers and businesses involved in international trade were advised to keep themselves updated with the latest information from the apex bank to accurately calculate duties and avoid delays or issues when clearing their goods.

  • CBN warns Nigeria, others on New Debt Risks

    CBN warns Nigeria, others on New Debt Risks

    The Central Bank of Nigeria (CBN) has issued a warning message to Nigeria and other West African nations regarding trends in borrowing practices.

    Traditionally, nations often relied on loans from the Paris Club, a group of creditor countries.

    However, the CBN has observed a significant shift towards borrowing from non-Paris Club members and private lenders, such as banks and investors who buy government bonds.

    The West African Institute for Financial and Economic Management (WAIFEM) has warned that Nigeria is at a high risk of falling into debt distress and urged the federal government to look for ways of improving revenue generation.

    Governor of the CBN, Yemi Cardoso, gave the warning in Abuja at the Joint World Bank/IMF/WAIFEM Regional Training on Medium Term Debt Management Strategy in Abuja on Monday, March 4.

    Represented by Dr. Mohammed Musa Tumala, Director of the Monetary Policy Department of the CBN, Cardoso noted that while this change in who countries owe money to might seem like a minor detail, he emphasized that it is a critical development with serious implications.

    Read Also; Ondo 2024: Akeredolu’s wife blasts in-law for supporting Aiyedatiwa

    He argued that the way countries manage debt owed to the Paris Club may not be as effective for these new lenders. Cardoso expressed concern that this new debt landscape could pose a threat to financial stability and economic recovery for many countries.

    According to the CBN Governor, “Public debt dynamics are increasingly influenced by significant debt servicing obligations to non-Paris Club members and private lenders, including commercial banks and bond investors. This shift in the debt structure represents a critical evolution in the global financial framework, with profound ramifications for public debt management in our countries.

    Cardoso stated that recent events like the COVID-19 pandemic, geopolitical conflicts, and natural disasters have put a strain on many countries’ finances, making them more likely to seek loans from diverse sources. However, these non-traditional lenders might come with stricter repayment terms and potentially higher risks compared to Paris Club loans.

    “Following the COVID-19 pandemic, along with other developments such as geopolitical conflicts and natural disasters, the financial strain on our sub-region has escalated, posing a threat to their macroeconomic and financial stability and prospects for faster recovery,” he said.

    Nigeria, despite being classified as having generally moderate debt risk, the CBN urged the federal government to remain cautious, particularly regarding potential liquidity risks. These risks, if not addressed effectively, could stem from weak revenue mobilization, a persistent challenge hindering debt sustainability and economic stability.

    What the CBN is saying is that while Nigeria’s overall debt risk is considered moderate, the country still needs to be careful about its ability to pay back its loans (liquidity risk). This risk could become a problem if the government doesn’t collect enough revenue (money) in the future.

    Dr. Baba Yusuf Musa, Director General of the West African Institute for Financial and Economic Management (WAIFEM) told journalists: “When you compare Nigeria with the rest of the world or peer countries, you realize that with the 37 percent debt to GDP ratio, we still have room to borrow but the issue with the Nigerian debt is you don’t use GDP to pay debts rather you use the revenue to pay for any debt”

    He added: “If you look at it from the revenue side Nigeria is at a high risk of debt distress in terms of our borrowing so what we need to do now is to step up our capacity to generate revenue, the more revenue we have, the less ratio of debt to revenue we have.”

    WAIFEM, he said, is “very much in support of what the federal government is doing because there is a window for the government to raise more revenue, all that the people need to do is to support the federal government diversify the sources of revenue and of course generate more sources of revenue, once we have this we don’t really have debt problem but rather revenue problem

    Musa said: “What the Medium Term Debt Strategy (MTDS) does is that it smoothens the debt service so that going forward when borrowing, you take into consideration the redemption profile that you have and the type of loans that you have in your existing portfolio and then it will enable you also to minimize the cost and risk the future loans will add to the debt portfolio.”

  • FX liquidity boost: CBN sells N1.053tr securities

    FX liquidity boost: CBN sells N1.053tr securities

    The Central Bank of Nigeria (CBN) has sold over N1, trillion of government securities as part of efforts to boost the availability of foreign exchange, it was learnt last night.

    Before approaching the market, the CBN aimed to raise N500 billion through short-term instruments as part of its ongoing efforts to manage liquidity in the financial system.

    However, the offering was met with strong demand, exceeding expectations and a total of N1.053 trillion (approximately $680 million) was raised.

    The CBN said it “offered N500 Billion at the Open Market Operations (OMO) auction and it was oversubscribed, selling N1.053 Trillion, with 79 percent of the total bids, or the equivalent of $530 million, coming from foreign investors”.

    This particular auction marked the first since last week’s meeting of the CBN’s Monetary Policy Committee (MPC) which “was followed by a virtual meeting with foreign portfolio investors”.

    During the meeting, CBN Governor Dr. Olayemi Cardoso, outlined a comprehensive strategy to tackle inflation, stabilise the exchange rate, and boost confidence in the banking system and the broader economy.

    Read Also: Emefiele moves out of CBN gov’s quarters in Lagos

    The CBN boss explained to investors the bank’s expectation of sustained growth in foreign currency reserves, improved liquidity in the foreign exchange market, and the imminent settlement of outstanding legitimate foreign exchange transactions.

    He reiterated the CBN’s commitment to curbing inflation through necessary measures to ensure long-term foreign exchange market liquidity.

    “Our focus remains on building a fully functional market that allows for smooth participation by investors,” he added.

    Mrs. Hakama Sidi Ali, the bank’s Acting Director of Corporate Communications, who spoke to reporters in Abuja, described the development as a sign of the increasing investor confidence in the CBN.

    She also expressed the bank’s management’s optimism that its recently implemented monetary policies are beginning to yield positive results.

    Mrs. Hakama said: “What the oversubscribed securities means is that the Central Bank of Nigeria is taking steps to fight inflation by issuing government securities and implementing liquidity management exercises.

    By oversubscribing the sale of short-term instruments, the CBN is able to increase liquidity in the foreign exchange market and stabilise the exchange rate. The CBN’s strategy includes increasing foreign currency reserves, improving liquidity in the foreign exchange market, and settling the backlog of genuine Foreign Exchange transactions.

    This shows that the CBN has the confidence of investors and its monetary policy measures are starting to show positive results in the fight against inflation by mopping up excess liquidity through the Open Market Operations (OMO).

  • CBN reform bill

    CBN reform bill

    • Proposed Senate amendments should stave off recurrence of past deviations

    Members of the Senate are processing a bill seeking to peg the tenure of the Central Bank of Nigeria (CBN) governor and deputy governors to a six-year non-renewable term. The bill proposes to amend, among others, Section 8(2) of the CBN Act 2007 that prescribes a five-year tenure, renewable for another term not exceeding five years, for the governor and deputies.

    Sponsored by Senator Adetokunbo Abiru (APC, Lagos East), the bill proposes other measures that were apparently informed by the apex bank’s operations under the immediate past governor, Godwin Emefiele. It scaled second reading in the red chamber early last week and was referred for further legislative action to the Committee on Banking, Insurance and Other Financial Institutions that Senate President Godswill Akpabio mandated to revert within two weeks.

    Leading the debate on the bill, Abiru, who chairs the Senate panel, argued that experience had shown that a single non-renewal term for governors and deputy governors of central banks serves to lessen political influence on monetary policy decisions. “Empirical evidence shows that a single term for the members of the executive and board members of central banks helps to reduce political influence on monetary policy decisions and time inconsistency problem associated with non-independent central banks,” he said, adding: “This is the practice adopted by many independent banks such as the US Federal Reserve and the European Central Bank where their chief executive officers serve only one non-renewable term.”

    The bill, co-sponsored by 41 other members of the Senate panel, also proposes that where a vacancy exists as a result of death or resignation of a CBN governor or deputy governor, the president of the country could appoint an acting office holder pending the appointment of a substantive one. It added that where a substantive appointment is made, such appointment will be for a fresh term rather than to serve out the tenure of the previous governor or deputy governor. The bill further seeks to empower career CBN officials for elevation to the position of deputy governors. According to the sponsor, it will also mandate government to appoint at least one female among external directors of the Monetary Policy Committee.

    Other major reforms proposed by the bill pertain to CBN’s ‘ways and means’ advances to the Federal Government and modalities for issuing new legal tender. The bill prescribes that government must refund ‘ways and means’ facility obtained from the CBN within three months after it is made available. Abiru argued that the current provision that government could repay the loan before the end of the fiscal year is prone to abuse, as it creates a window for the government to obtain overdrafts from the apex bank in January and wait until December to make repayment. On issuance of new legal tender, the bill proposes that before CBN could replace an old legal tender with a new one under any restructuring, redesigning, redenomination or any similar arrangement:

    Read Also: Emefiele moves out of CBN gov’s quarters in Lagos

    o It should give at least one year notice of its intention.

    o The programme should span at least two years from the date of announcement of its intention.

    o While the programme lasts, both the old and new currency notes and coins should serve as legal tender simultaneously.

    o Withdrawal of the old legal tender should be done in phases and in a manner that does not create distortion in economic activities.

    o The CBN should be in possession of sufficient new currency stock – not less than 70 percent of the currency to be withdrawn – before embarking on such a programme.

    Since Dr. Olayemi Cardoso took the helm at the CBN in September 2023, he has been resetting operations of the apex bank from deviations recorded under the tenure of Emefiele. The former CBN governor held office from 2014 to 2023, spanning a second term that began in 2019, and strayed so far from the statutory mould of the apex bank that he threw his hat in the ring for partisan contest of the 2023 presidential poll before he was halted by a directive of former President Muhammadu Buhari. He also implemented a highly chaotic redesign of Naira notes and is currently being investigated by a Senate panel, along with the Buhari government, for disbursement and usage of N30trillion ‘ways and means’ advances.

    The law being processed in the Senate obviously aims at putting checks in place to prevent future recurrence of the Emefiele era. We fully support this move. But it must be mentioned that the challenge of that era was not any fundamental defect in the provisions of CBN Act 2007, but failure of legislators to ensure diligent oversight and adherence to provisions of the law. Even if the law is reworked, the oversight failure must also be remedied for desired results to be achieved. And that is lawmakers’ call.

  • CBN keeps mum as deadline of BVN, NIN linkage expires

    CBN keeps mum as deadline of BVN, NIN linkage expires

    The Central Bank of Nigeria (CBN) has kept mum as the deadline for banks to restrict customers’ accounts without a Bank Verification Number or National Identity Number has expired.

    The CBN asked banks to restrict tier-1 accounts or wallets without NIN or BVN in a notice on December 1, 2023, signed by the Director of Payments System Management Department, Chibuzo Efobi and Director of Financial Policy and Regulation Department, Haruna Mustapha.

    “For all existing Tier-1 accounts/wallets without BVN or NIN: Effective immediately, any unfunded account/wallet shall be placed on ‘Post No Debit or Credit’ until the new process is satisfied.

    “Effective March 1, 2024, all funded accounts or wallets shall be placed on ‘Post No Debit or Credit’, and no further transactions will be permitted. The BVN or NIN attached to and/or associated with all accounts/wallets must be electronically revalidated by January 31, 2024,” the statement partly reads.

    Read Also: Naira: Over 4,000 BDCs lose licences in CBN crackdown

    Meanwhile, customers have appealed to CBN for a deadline extension.
    Bank customers at home and abroad who are yet to link their Bank Verification Number (BVN) or National Identity Number (NIN) to their accounts are seeking more time from the authorities to enable them to comply.

    Banking halls across the country were packed full on Friday by such customers after their accounts were put on “Post No Debit or Credit” following the expiration of the March 1 deadline given by the Central Bank of Nigeria (CBN).

  • Naira: Over 4,000 BDCs lose licences in CBN crackdown

    Naira: Over 4,000 BDCs lose licences in CBN crackdown

    • Operators sanctioned for breaching money laundering laws, others
    • Confusion over $10b Binance fine claim

    The battle to shore up the value of the Naira and clean up the financial system continued yesterday with the Central Bank of Nigeria (CBN) revoking the operating licences of 4,173 Bureaux De Change (BDC).

    Invoking its powers under the Bank and Other Financial Institutions Act (BOFIA) 2020, Act No. 5, and the Revised Operational Guidelines for Bureaux De Change 2015 (the Guidelines), the apex bank accused the affected BDCs of non-compliance with various regulatory provisions.

    The allegations against them, according to the CBN Acting Director of Corporate Communications, Hakama Sidi Ali, are: failure to pay all necessary fees, including licence renewal, within the stipulated period in line with Guidelines; non-rendition of returns in line with the Guidelines; and non-compliance with guidelines, directives and circulars of the CBN, particularly Anti-Money Laundering (AML); Countering the Financing of Terrorism (CFT) and Counter-Proliferation Financing (CPF) regulations.

    The CBN said that in a bid to ensure better compliance and regulation of the Bureau de Change sector in Nigeria, it had embarked on revising the regulatory and supervisory guidelines for their operations.

    “Once the revised guidelines are implemented, all stakeholders in the sector will be obligated to comply with the new requirements,” the CBN said.

    It asked the public to take note of this development and follow the guidelines accordingly. The list of the affected Bureaux De Change operators can be found on the CBN’s website at www.cbn.gov.ng.

    The revocation of the BDCs’ licences came just days after the CBN allowed BDC operators to resume forex transactions at the Nigerian Autonomous Foreign Exchange Market (NAFEM) – the official market, and released draft guidelines proposing significant changes to how BDCs operate.

    Although the licence revocation has sent shock waves through the industry, observers of the financial sector seem not to have been surprised as the apex bank on Monday excluded the affected BDCs from access to dollar sales from the official market.

    Of the 4,800 CBN-licenced BDCs, only 785 had access to forex from the official window on Monday after the apex bank resumed sale of dollars to the operators.

    The CBN penultimate Friday raised the minimum capital requirements for BDC operators to N2 billion for Tier 1 licence holders and N500 million for  a Tier 2 licence under the CBN’s revised Regulatory and Supervisory Guidelines for Bureau de Change (BDC) Operations.

    Read Also: CBN revokes licenses of over 4,000 Bureau De Change operators

    Before now, a general licence cost N35 million.

    The CBN and the Economic and Financial Crimes Commission (EFCC) had earlier launched a clampdown on street trading of foreign exchange by BDCs, in a multi-pronged approach by the authorities to address perceived irregularities in the forex market.

    Some BDC operators were accused of manipulating the forex exchange which is said to be largely responsible for the current state of the national currency.

    Justice Mohammed Nasir Yunusa of the Federal High Court, Kano on Wednesday convicted and sentenced three illegal bureau de change operators to three years imprisonment for operating without a requisite licence. 

    The convicts, Umar Ibrahim Muhammad, Abubakar Yakubu Garba and Muhammad Tijjani, were jailed after pleading guilty to one-count separate charges of illegal dealing in foreign currency without an appropriate licence.

    Confusion over $10b fine slammed on Binance

    Special Adviser to the President on Information and Strategy, Bayo Onanuga, yesterday denied media reports quoting him as saying the federal government had imposed a $10 billion fine on Binance as penalty for allegedly undermining the naira.

    Onanuga had told the BBC that Binance profited immensely from its “illegal transactions” in Nigeria while the country itself suffered heavy losses.

    He said he used the word ‘may’ and no concrete decision had been taken by government against Binance.

    The federal government last week banned several crypto exchanges such as Binance, Coinbase and Kraken, as part of the strategy to save the naira from further assault.

    Earlier this week, security agencies also quizzed two senior Binance executives as they arrived in the country.