Table of Contents
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, emphasized that Bureau De Change (BDC) operations in the country should not be an open field for everyone.
He mentioned that the apex bank is formulating “strict regulations” to cleanse the market from arbitrage. Speaking at the Monetary Policy Committee (MPC) meeting in Abuja, the CBN governor stated that the regulatory environment would become more aggressive to address challenges in the sector.
Join our Telegram Channel for Updates
Nigeria is currently contending with issues such as rising inflation, food inflation, a foreign exchange crisis, economic challenges, and a high cost of living, amplified by the removal of the petrol subsidy, which has led to protests in various parts of the country.
The naira has reached an all-time low since the currency was floated and the exchange rate unified. The Nigerian currency depreciated significantly from over N700/$1 in May 2023 to more than N1500/$1 at present.
Governor Cardoso emphasized the need for a stringent regulatory environment, noting that many individuals entered the BDC sector with diverse interests, contributing to arbitrage activities. He disclosed that the CBN is working on guidelines, proposing a minimum share capital of half a billion naira for specific categories of BDCs in a particular location. For those operating nationwide, the proposed minimum share capital is N2 billion.
The governor also highlighted that the regulatory framework would define specific criteria for potential BDC owners, aiming to ensure that participation is not open to everyone but reserved for those genuinely committed to providing services for Nigerians.
He mentioned that technology would play a role in BDC operations, and the regulatory exercise aims to enhance competition, ultimately benefiting Nigerians through lower prices.
