February 23, 2024

CBN excludes govts, banks, others from owning BDCs

CBN optimistic about impact of reforms in FX market

By Elizabeth Adegbesan

The Central Bank of Nigeria, CBN has excluded governments, commercial banks, merchant banks, Other Financial Institutions, OFIs , public officers among other parties from owning Bureau De Change (BDCs) directly or indirectly.

CBN disclosed this today in its Guidelines for the operations of BDCs in Nigeria.

The apex bank noted that no person is permitted to carry on the business of BDC in Nigeria without its authorization.

Section 2.0 of the guidelines stated:”The following shall not be allowed to participate in the ownership of BDCs, directly
or indirectly: Commercial, merchant, non-interest and payment service banks, OFIs, including holding companies and payment service providers, 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, 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.”