CBN

Abuja, March 2, 2024: The Central Bank of Nigeria (CBN), has revoked the operational licences of 4,173 Bureaux De Change (BDCs) for failure to observe some regulatory provisions.

According to a statement issued by CBN’s Acting Director, Corporate Communications Department, Mrs Hakama Sidi, on Friday in Abuja, the move is in exercise of the powers conferred on it under the Bank and Other Financial Institutions Act (BOFIA).

Sidi said that the list of affected BDC operators was available on the Bank’s

Website and that the affected institutions failed to observe at least one of the following regulatory provisions:

They are payment of all necessary fees, including licence renewal, within the stipulated period in line with the guidelines.

Others are the rendition of returns in line with the guidelines and compliance with 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 is revising the regulatory and supervisory guidelines for BDC operations in Nigeria.

” Compliance with the new requirements will be mandatory for all

stakeholders in the sector when the revised guidelines become effective.

“Members of the public are hereby advised to take note and be guided accordingly,” she said.

Lagos, Feb. 24, 2024: The Central Bank of Nigeria (CBN) has issued a draft of revised Regulatory and Supervisory Guidelines for all Bureau de Change (BDC) Operators and stakeholders in the financial services industry in the nation for evaluation, contributions and acceptance.

The guidelines which seeks to enhance the regulatory framework for BDC operations as part of ongoing reforms of the Nigerian foreign exchange market, was contained in a circular on Friday.

The circular signed by Haruna Mustafa, Director, Financial Policy and Regulation Department of the CBN had the 50 paged guidelines attached.

The guidelines spelt out activities allowed, licensing requirements, corporate governance and Anti-Money Laundering/Combating the Financing of Terrorism provisions for BDCs.

The draft document on the CBN’s website also listed new record-keeping and reporting requirements, corporate governance requirements, financial requirements, among others.

“Pursuant to the powers conferred under Section 56 of the Banks and Other Financial Institutions Act, 2020 (BOFIA), the Central Bank of Nigeria (CBN) hereby issues this draft revised Regulatory and Supervisory Guidelines for Bureau de Change (BDC) Operations in Nigeria for stakeholder comments and/or inputs.

“The Guidelines significantly enhances the regulatory framework for the operations of Bureau De Change as part of ongoing reforms of the Nigerian foreign exchange market.

“The Guidelines revises the permissible activities, licensing requirements, corporate governance and Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) provisions for BDCs.

“It also sets out new record-keeping and reporting requirements, among others,” the circular said.

Mustafa said the draft guidelines were available on the CBN’s website, www.cbn.gov.ng.

He urged stakeholders to forward thier comments to the Director, Financial Policy and Regulation Department, CBN, Abuja with soft copies mailed to PolicyandRegulationDivision@cbn.gov.ng by March 4, 2024.

Some portions of the 50 paged draft document targeted transparency, elimination of corruption and hoarding of fx.

It gave reasons for preservation of records and conditions for revocation of BDC operations licence.

“Every BDC shall maintain documents obtained from its customers for at least five (5) years after the consummation of the transaction,” draft item 18.0 in the schedule noted.

It said the CBN may revoke the license of a BDC: where the operator or its entities forges, mutilates, alters or defaces any foreign currency, or other fx instruments with intent to defraud.

The document also prohibited multiple ownership of BDCs; obtaining foreign currency from ineligible sources or from eligible ones in a fraudulent manner.

It also spelt out sanctions for other regulatory infractions.

Abuja, Feb. 24, 2024: The Central Bank of Nigeria (CBN) has reviewed the formula for fixing foreign exchange rates for Customs duty on importation.

Dr Hassan Mahmud, the Director, Trade and Exchange Department of the CBN said this in a memo addressed to the Nigeria Customs Service (NCS) and the general public on Friday in Abuja.

According to Mahmud, the idea is to check irregular changes in the Import Duty Assessment levies applied by the NCS.

“Following the liberalisation of the FX market, the CBN has noted the concern of Importers of goods and services in the irregular changes in the Import Duty Assessment levies applied by the NCS.

“These developments have further built uncertainties around the pricing structure of goods and services in the economy.

“It is creating abnormal increase in the final sale prices of items, which is largely driven by uncertainty rather than traditional market fundamentals, with implications to near term inflation trend.

“To this effect, the CBN wishes to advise that the NCS and other related parties adopt the closing FX rate on the date of opening Form M for the importation of goods, as the FX rate to be used for Import Duty Assessment,” he said.

The director said that this rate would remain valid until the date of termination of the importation and clearance of goods by importers.

He said that this would enable the NCS and the importers to plan appropriately and reduce the uncertainties around varying daily exchange rate in determining their revenue or cost structure.

“Therefore, effective Feb. 26, the closing rate on the date of opening of Form M for the importation of goods and services will be the rates that will apply for the assessment of import duty.

“This supersedes the requirements of Memorandum 9 of the CBN Foreign Exchange Manual.

“While the CBN is mindful of the initial volatility and price distortions in the aftermath of the FX market liberalisation, the apex bank is confident that these reforms would ensure stability in the market and entrench market confidence,” he said.

The NCS had adjusted its FX rate for tariffs and duty collection to N1,413 to the dollar on Feb. 3.

The NCS had earlier adjusted the rate from N951 to N1,356 to the dollar on Feb. 2.

The frequent review of Customs exchange rates for computing Import Duty had raised concerns among Nigeria’s business community.

Abuja, Feb. 7, 2024: The Central Bank of Nigeria (CBN) has pledged to deal decisively with any bank found sabotaging monetary policies or guilty of unauthorised withdrawals from customer accounts.

The Governor of the apex bank, Mr Olayemi Cardoso made the pledge on Tuesday while briefing members of the House of Representatives in Abuja.

According to him, some departments in the CBN are being strengthened to carry out greater surveillance and over sight.

He said that alleged indiscriminate charges and withdrawals from customers accounts shall be investigated upon reports and dealt with decisively.

“I want to assure you that I have no reluctance to wilding the big stick, this is the time when people and entities that we regulate must comply, we must do the right thing.

“We will stop at nothing in wilding the big stick or hammer in ensuring that the do the right thing  for the benefit of Nigerians,” he said.

According to him, if invested, we will come down on any bank found wanting;

The CBN boss explained that the redeployment of some members of staff and some departments to Lagos state was for efficiency, save cost and not for political reasons as peddle in some quarters.

He said that it was only wise to move the Banking Supervision Department to Lagos state where all the banks have their headquarters for easy and efficient monitoring.

He said that the transfer was a tool to balance the bank’s skills across its offices nationwide to ensure accurate data generation and response to monetary issues.

On the weakening of the Naira, Cardoso stressed the need for attitudinal change that will benefit local economy by patronising local production.

He said that an estimated N$40 billion is spent of education and medical toursim by Nigerians which is an equivalent of Nigeria’s foreign reserve.

He urged Nigerians to patronise local content to strengthen the Naira against the dollar and stabilise the economy.

Abuja, Feb. 4, 2024: The Central Bank of Nigeria (CBN) says it has no plans to convert domiciliary account holdings valued at 30 billion dollars into Naira.

Mrs Hakama Sidi-Ali, CBN’s Acting Director, Corporate Communications Department, made the clarification in a statement in Abuja on Saturday.

Sidi-Ali’s statement was a reaction to a media report that the apex planned to convert domiciliary accounts into Naira, to address the unending depreciation of the local currency.

“The attention of the CBN has been drawn to a story published by

a national newspaper, alleging that the Federal Government is considering converting 30 billion dollars domiciliary deposits to Naira.

“This allegation is absolutely false and aims to trigger panic in the foreign exchange market, which the CBN is working assiduously to stabilise, as evidenced by its recent work and policy directions.

“Similar false narratives have been spread on the work of the CBN over the past few months and it is clear that vested interests are determined to sabotage our efforts,” she said.

She assured that the CBN was working to build confidence and would never do anything to undermine the currency and the economy.

She urged all stakeholders to disregard stories aimed at causing panic in the system and see them as acts of national sabotage.

“We wish to advise, in the strongest terms, against the peddling of false reports that have the potential to be disruptive to the economy.

“The CBN is the only designated authority for monetary policy changes and will always advise on any policy changes before they are brought into operation.

“The CBN is always open to answer questions about our policies,” she said.

Naira has been on a free fall in the last few days, exchanging at N1,500 to the dollar.

This has created panic among some stakeholders who have been calling on the apex bank to take urgent steps to strengthen the Naira.

Abuja, Jan. 31, 2024: The Central Bank of Nigeria (CBN) says it has concluded the payment of all verified claims by airlines with an additional 64.44 million dollars.

Mrs Hakama Sidi-Ali, CBN’s Acting Director, Corporate Communications, said this in a statement on Tuesday.

Sidi-Ali said that the apex bank  had to fulfil its pledge to clear the backlog of foreign exchange owed foreign airlines in the country,

She said that the latest amount brought the total verified amount paid to the airlines to 136.73 million dollars.

“All the verified airline claims have now been cleared,” she said.

She assured that the CBN management was committed and would stop at nothing to ensure that the verified backlog of payments across all other sectors was cleared.

“We will ensure that confidence is restored in the Nigerian foreign exchange market.

“The CBN is working with stakeholders to ensure that liquidity improves within the forex market, thereby reducing pressure on the Naira,” she said.

Sidi-Ali expressed optimism that the market would respond positively with the latest injection of over 64.44 million dollars.

She admonished actors in the foreign exchange market to guard against speculation as such actions could hurt the Naira.

She also called on the Nigerian public to support the reforms in the foreign exchange market.

According to her, the CBN will continue to promote orderliness and professional conduct by all participants to ensure market forces determine exchange rates.

Abuja, Jan. 20, 2014: The Central Bank of Nigeria (CBN) under the tenure of Mr Olayemi Cardoso as governor has scheduled the first Monetary Policy Committee (MPC) for Feb. 26 and Feb. 27.

According to a statement by CBN’s Acting Director, Corporate Communications Department, Mrs Hakama Sidi-Ali, the apex bank , consequently, held a two-day strategic session for members of the MPC preparatory to the meeting.

Sidi-Ali said that the session aimed to brainstorm and engage in an in-depth discussion about the committee’s objectives.

She said that the critical focus areas during the retreat included deliberations on the strategic plan to effect necessary improvements in the monetary policy transmission mechanism.

She said that the sessions were facilitated by former MPC members, monetary policy communication specialists from the IMF and directors of departments critical to the MPC process.

“The valuable insights gained from these discussions will significantly contribute towards the robustness of the forthcoming MPC meetings,” she said.

The last meeting of the MPC was held in July 2023, and was presided over by erstwhile acting governor,  Folashodun Shonubi.

At the July 2023 meeting, the MPC raised the benchmark interest rate, known as the Monetary Policy Rate (MPR), by 25 basis points to 18.75 per cent from 18.50 per cent.

Meanwhile, a calendar of meetings of the Monetary Policy Committee (MPC) for 2024 published on the CBN website indicates that the meetings have been scheduled for February, March, May, July, September and November.