The Central Bank of Nigeria has mandated all existing Bureau De Change Operators to re-apply for new licenses in their preferred category.

This was announced on Wednesday in a circular issued by the apex bank, which was signed by the Director of the Financial Policy and Regulation Department, Haruna Mustafa.

However, BDC operators have rejected the new licensing guidelines, saying it is against best global practices.

However, the CBN noted that those adjustments aimed to streamline BDC operations and enhance financial accessibility.

The apex bank noted that the BDCs were expected to adhere to corporate governance requirements and anti-money laundering, counter-terrorism financing, and counter-proliferation financing provisions.

The latest circular comes a day after the Monetary Policy Committee of the apex bank raised the benchmark lending rate to 26.25 per cent to tackle the country’s soaring inflation.

Reading the communiqué of the meeting, the Governor of the CBN, Olayemi Cardoso, said, “Members further observed the recent volatility in the foreign exchange market, attributing this seasonal demand, a reflection of the interplay between demand and supply freely functioning market system.”

The naira has depreciated significantly since the CBN unified the country’s exchange rates, trading between 1,400/$ and 1,600/$ at the official and parallel markets in the last two weeks.

The new guidelines, which are an update on the draft that was exposed earlier in the year, go into effect on June 3.

The CBN removed the mandatory caution deposit, which the industry players had kicked against.

CBN set up two new categories; Tier 1 and Tier 2 BDC licences.

According to the new guidelines, “A Tier 1 BDC: a. May operate in any State of the Federation and the Federal Capital Territory, b. May establish branches and appoint franchisees in any state and FCT, subject to the written approval of the CBN. c. Shall maintain a minimum distance of one kilometre between its branches, its branch and a franchisee, and between its franchisees. d. Shall exercise oversight on its franchisees. All franchisees shall adopt their franchisor’s name, logo, branding, technology platform and regulatory rendition requirements. 2 Classified as Confidential: e. Shall comply with the franchising standards prescribed in this guidelines.”

A tier 2 BDC Licence allows the operator to operate from only one state of the federation or the FCT, and it is allowed to establish five branches in a state of operation, subject to the written approval of the CBN.

It is also required to maintain a minimum distance of one kilometre between its branches and is not allowed to appoint franchisees.

The BDCs (existing or new) would also be required to meet the capital requirements for their license category within six months.

Meanwhile, the President of the Association of Bureau de Change Operators of Nigeria, Aminu Gwadebe, speaking with The PUNCH said, “The requirement is huge. It is not in line with global practices. Capitalisation in the UK is 50,000 pounds; in Kenya, it is $50,000 and so on. I don’t think it reflects global practice. A BDC is not a deposit taker; it is only buying and selling.

“Also, I’m afraid, we would not go the way of Algeria when they came with such policies and at the end of the day, every other player runs to the open market operations and at the end of the day, Algeria had to look for that open market to even determine their local currency exchange rate. We should be careful so that we will not throw away our experience, capacity and investment,” he warned.

According to the ABCON president, the deadline given to BDCs is short.

“When you are giving other sectors, one year, or two years, why the rush with the sub-sector? The deadline is quite short. It is not feasible and then we should also guide against what we are trying to avoid.  The CBN in its mind is checkmating money laundering and we may meet money laundering in the future,” he argued.

According to the new rules, BDCs in the Tier 1 category would be required to have a minimum capital requirement of N2bn, pay N1m as a non-refundable application fee and N5m as a non-refundable licence fee.

The apex bank disclosed that Tier 2 BDCs would be required to have a minimum capital base of N500m, N0.25m as a non-refundable application fee and N2m as a non-refundable licence fee.

The new rules allow BDCs to participate in the Nigerian foreign exchange market as a dealer, following application and approval to the director of the Trade & Exchange Department for an authorised dealership licence.

The CBN said while BDCs could source dollars from individuals, adding, “Sellers of the equivalent of $10,000 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 and 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.

“Every BDC shall conspicuously display its buying and selling rates. Such rates shall apply throughout all its branches, and where applicable, its franchisees. Disclaimers or statements by a BDC to the effect that an exchange rate indication is not to be relied on are prohibited. i. A BDC shall not give customers price indications which are misleading or make price comparisons which are not genuine or fair. Every BDC shall maintain adequate records of all its transactions for transparency and compliance with CBN Guidelines, AML/CFT/CPF provisions, circulars or directives,” part of the guidelines stated.

In terms of prudential requirements, the CBN said, “BDCs are required to observe the following prudential requirements:  Net Open Position (NOP) limit in foreign currency of the equivalent of 30 per cent of its shareholders’ funds unimpaired by losses or as may be determined by the CBN from time to time. Limit total borrowing to 50 per cent of shareholders’ funds unimpaired by losses and maintain insurance cover over cash (both naira and foreign currency) in office and in transit, fire, and staff fidelity.”

Ahead of the 2027 general elections, the All Progressives Congress (APC) says Mr Peter Obi and Mr Atiku Abubakar are desperate to be Nigeria’s President.

While Obi was the Labour Party’s presidential candidate in 2023, Atiku was the flagbearer for the Peoples Democratic Party (PDP).

Obi was Atiku’s running mate in the PDP during the 2019 general election.

Recently, there were reports of both opposition politicians coming to form an alliance that will sack the ruling APC in 2027.

Reacting to the development, the APC spokesman, Felix Morka, said Obi’s planned return to the PDP won’t be a surprise. He described the former Anambra State governor as a “political wayfarer that is only dwarfed by Atiku’s track record as a veteran political wanderer.”

“Atiku and Obi are united by their mutual desperation to be President of Nigeria and ignoble disdain for President Bola Tinubu’s focused and extraordinary commitment to the transformation of our nation,” the statement read.

“A recent visit by the presidential candidate of the Labour Party (LP) in the 2023 presidential election, Peter Obi, to his Peoples Democratic Party (PDP) counterpart, Alhaji Atiku Abubakar, has fueled speculations of a possible alliance between both men or merger of their political parties in the lead up to 2027.

“What is unclear, however, is whether Obi would make a comeback to Atiku’s PDP or whether Atiku would dump his PDP and seek rehabilitation in Obi’s Labour Party or whether both men would abandon PDP and Labour, altogether, and sojourn into the political wilderness of Professor Pat Utomi’s mega party.”

See the statement below:

ATIKU, OBI, UNITED BY MUTUAL DESPERATION

A recent visit by the presidential candidate of the Labour Party (LP) in the 2023 presidential election, Peter Obi, to his Peoples Democratic Party (PDP) counterpart, Alhaji Atiku Abubakar, has fueled speculations of a possible alliance between both men or merger of their political parties in the lead up to 2027.

What is unclear, however, is whether Obi would make a comeback to Atiku’s PDP or whether Atiku would dump his PDP and seek rehabilitation in Obi’s Labour Party or whether both men would abandon PDP and Labour, altogether, and sojourn into the political wilderness of Professor Pat Utomi’s mega party.

News of Peter Obi’s return to the PDP would be hardly surprising. His reputation as a political wayfarer is only dwarfed by Atiku’s track record as a veteran political wanderer. News of Atiku joining the Labour party will shock no one as he will be living up to his well established reputation as the country’s most itinerant politician. For now, Utomi’s mega party remains a figment with no offering of tangible accommodation for both men.

Atiku and Obi are united by their mutual desperation to be President of Nigeria and ignoble disdain for President Bola Tinubu’s focused and extraordinary commitment to the transformation of our nation. Their restless drift in search of convenient party platforms to execute their presidential run only belie the self-indulgent and opportunistic essence of their aspirations. Men without the staying power to build or fix their own parties, who flee at the slightest flicker of internal crisis cannot possibly be trusted by Nigerians to tackle serious and complex national political and economic challenges that confront our nation.

President Bola Tinubu embodies character, vision, tenacity and doggedness required to deliver a resurgent Nigeria of stable growth and development. The administration’s bold economic policy reforms and massive infrastructural uptake have already shattered historic barriers to growth, and paved the way for steady progress and development.

We urge Nigerians to stand fast in their invaluable support of our great Party and President Bola Tinubu’s determined commitment to deliver a stronger, secure and more prosperous country for us all.

Signed:

Felix Morka, Esq.

National Publicity Secretary

All Progressives Congress (APC)

The Central Bank of Nigeria has updated its regulatory guidelines for Bureau De Change operators.

After consulting with stakeholders, the following changes were made:

The mandatory caution deposit of N200m for tier-1 BDC licence holders has been removed.

Similarly, N50m for tier-2 licence holders has also been waived.


The non-refundable annual licence renewal fee has been withdrawn.

Previously, tier-1 BDCs paid N5m, while tier-2 BDCs paid N1m for renewal.

The bank noted that these adjustments aim to streamline BDC operations and enhance financial accessibility.


The Director, Financial Policy and Regulation Department at the apex bank, Haruna Mustafa disclosed this in a circular uploaded to the bank’s website on Wednesday.

Mustafa stated that existing BDCs must re-apply for a new licence based on their preferred tier or licence category as outlined in the guidelines.

New BDC licence applicants must meet the conditions specified for their chosen BDC category.

Existing BDCs must meet the minimum capital requirements for their selected licence category within six months from the effective date of the guidelines.

The guidelines also revised permissible activities for BDCs, ensuring alignment with market needs and regulatory standards.

Mustafa noted that the BDCs are expected to adhere to corporate governance requirements and anti-money laundering, counter-terrorism financing, and counter-proliferation financing provisions.

The bank added that receipt and processing of license applications will begin from the effective date of the guideline.

It said that interested applicants should submit the following information electronically to This email address is being protected from spambots. You need JavaScript enabled to view it.: Name of the promoter, Name of the proposed BDC, E-mail address of the promoter, Phone number of the promoter

These guidelines replace the Revised Operational Guidelines for Bureau De Change in Nigeria issued in November 2015 and all related circulars and directives.

The Regulatory and Supervisory Guidelines for BDC Operations take effect from June 3, 2024.

The circular partly read, “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.

“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.”

George Akume, secretary to the government of the federation (SGF), says Nigeria has witnessed significant strides in various sectors of the economy since President Bola Tinubu assumed the reins in May 2023. 

The Tinubu administration has rolled out a slew of policies that have aggravated the economic hardship on Nigerians, notably the removal of subsidy on petrol and the “float” of the naira. Speaking at the ‘Ministerial Sectoral Updates’ in Abuja on Wednesday, Akume said the administration has also rolled out social intervention programmes to mitigate the hardship.

“I make bold to say that, Nigeria, under its present stewardship, has witnessed significant policy strides in various sectors including but not limited to,” the SGF said.

“i. The Presidential accent to the 2023 Electricity Bill, a move that dismantled monopolistic control over electricity generation, transmission and distribution at the national level and granted authority to State Governments, Corporations and individuals to generate, distribute and transmit electricity, thus decentralizing the power sector;

“ii. Accent to the passage into law of the Nigeria Data Protection Bill 2023 that established a legal framework for safeguarding personal information and promoting data protection practices in Nigeria; and

“iii. The challenging but very necessary Removal of Fuel Subsidy, a longstanding policy notorious for fostering corruption, inefficiency and imposing significant fiscal strain on the government annually, and primarily benefitting the affluent and smugglers, rather than effectively aiding the general populace.

“​It is apt to say that under President Tinubu’s stewardship within his first year in office, we have witnessed significant strides in various sectors of our economy.Through prudent fiscal policies and strategic investments, the Nigerian economy has shown resilience and potential for growth.

“The administration’s focus on infrastructure development, job creation and economic diversification has laid the foundation for sustainable progress and prosperity for all Nigerians. Furthermore, the government’s commitment to good governance and the rule of law has strengthened our democratic institutions and enhanced transparency and accountability in governance.”

Akume added that citizens should be part of nation building because it is not the sole responsibility of government.
“Let us therefore rededicate ourselves to the ideals of unity, peace and progress by working together towards realizing the full potential of our great nation,” Akume added.

Atalanta winger, Ademola Lookman, has said the 3-0 win over Bayer Leverkusen in the Europa League final on Wednesday is one of the “best nights of my life’.

Lookman scored twice in the first half and once after the break, as they became the first Serie A team to win the title.

The win also ended Leverkusen’s 51-game unbeaten run in emphatic style. 

Lookman, speaking to TNT Sports, said: “One of the best nights of my life.

“Amazing performance from the team, we did it, we did it, we did it! Not got much else to say but yeah fantastic.

“They do always say third time lucky, so yeah it is for us today [winning a final at the third attempt this season]. I’m just happy we won. We won today so yes very pleased.”

Tanzania holds the top spot with a debt-to-GDP ratio of 41.8%, reflecting its prudent financial decisions.

Contrary to common belief, the International Monetary Fund (IMF) has ranked Nigeria’s debt-to-GDP ratio, a key indicator of a country’s financial strength, as the second lowest in Africa, underscoring its economic stability.

This ranking underscores the importance of evaluating a country’s financial strength through metrics like the debt-to-GDP ratio.

A lower ratio suggests economic stability, while a higher ratio raises alarms about debt sustainability.

Tanzania, a model of careful debt management, holds the top spot with a debt-to-GDP ratio of 41.8%, reflecting its prudent financial decisions.

Nigeria follows closely with a ratio of 41.3%, signifying its crucial role in Africa’s economy, even though its external debt stood at $41.59 billion or N31.98 trillion as of December 2023.

Nigeria’s relatively modest debt levels are due to several reasons, including its diverse economic sectors and efficient debt management practices.

According to the Nigerian Tribune, the Debt Management Office (DMO) reports that Nigeria’s total debt is approximately N97.34 trillion.

Through careful debt management, Nigeria has maintained economic stability and boosted investor confidence, resulting in a favourable debt position despite its significant role in Africa’s economy.

African nations with low debt levels, like Nigeria, are not only more attractive to investors but also stand a higher chance of receiving additional financial support from global and local creditors, thanks to their reduced economic risk.

Nigeria’s higher ranking than Cameroon, Chad, Comoros, Equatorial Guinea, Guinea, Ethiopia, Botswana, and the Democratic Republic of Congo highlights its strong debt standing.

The federal government has apologised to Nigerians over the economic pains they go through as a result of the reforms embarked upon by the Bola Ahmed Tinubu administration.

The apology came yesterday from the minister of budget and economic planning, Atiku Bagudu, at a Ministerial Sectoral Update in Abuja

He, however, staunchly defended the policies of the Tinubu-led administration.

Bagudu acknowledged that both foreign exchange rate and inflation figures were still above target levels, putting strain on the economy and the citizens’ pockets.

The minister said, “I apologise for the pains that they (policies) may occasion, but they are necessary.”

The naira has plummeted from around N460 to a dollar to a staggering N1,480 while inflation skyrocketed to 33.69 percent as of April 2024, up from 22.22 percent a year prior.
Despite the economic crisis, the minister insisted the Tinubu administration’s “Renewed Hope Agenda” centered around eight priority areas was on the right track to spur growth in the economy.

“Is our strategy right? Absolutely. We believe our strategy is right, but it requires occasional calibration,” Bagudu asserted.

He argued that restoring macroeconomic stability was crucial to attract investment and generate revenues to address underinvestment in sectors such as security, education and social welfare.

The minister portrayed the current economic challenges as pains accompanying an overdue economic restructuring.

“Nothing we do can solve the problem of underinvestment without restoring a macro-economy that can stimulate investment,” he said.

Meanwhile, the secretary to the government of the federation (SGF), Senator George Akume, has said the current administration has made significant strides in reviving the economy and implementing social programmes to lift the citizens during its first year in office.

Delivering the administration’s one-year progress report at a ministerial sectoral updates session yesterday, Akume highlighted Tinubu’s efforts to unleash Nigeria’s economic potential through major reforms.

“This administration has implemented significant economic reforms aimed at stabilising our economy and fostering sustainable growth,” Akume said.

He pointed to policies that have attracted foreign investment and spurred job creation across various sectors.

According to him, a major economic move was the dismantling of monopolistic control over electricity through the 2023 Electricity Law, allowing states, corporations and individuals to generate, distribute and transmit power.

On the fiscal front, he said the removal of the contentious fuel subsidy was hailed as a “challenging but necessary” step to curb corruption, inefficiency and reduce the annual fiscal burden on the government.

The SGF said infrastructure development has been another key focus area, with the completion of extensive road networks, improved rail systems and modernisation of ports to facilitate trade and connectivity.

Alongside economic measures, Akume emphasised the administration’s people-focused policies through an array of social intervention programmes targeting poverty alleviation and empowerment of vulnerable groups.

“These initiatives have provided financial assistance, skills acquisition opportunities and improved access to essential services,” he explained.

The SGF said investments have also been channelled into healthcare through new facilities and educational reforms to boost human capital development.

However, Akume admitted the first year had its challenges from various angles. But he commended President Tinubu for his “calm, unwavering commitment and resilience” in serving Nigerians with diligence.

Moving forward, the administration remains focused on implementing its “Renewed Hope Agenda” centered on economic revitalization, social inclusion and infrastructural progress for the betterment of all Nigerians, Akume stated.

He called for collective efforts towards unity, peace and realizing Nigeria’s full potential through the government’s vision and policies.

Former Commander of the Force Intelligence Response Team, DCP Abba Kyari, has been granted two weeks’ bail by an Abuja Federal High Court.

Naija News understands that Kyari was granted bail to enable him to return home and complete the burial rites of his late mother.

The court subsequently set Friday, May 31 for determination of his bail application in trial over drug-related charges filed by the National Drug Law Enforcement Agency, NDLEA following his arrest over two years ago on February 14, 2022

Kyari is currently facing drug-related charges filed against him by the National Drug Law Enforcement Agency (NDLEA).

The Kano State House of Assembly has insisted that there is no going back on plans to amend the law Abdullahi Ganduje used to dethrone Sanusi Lamido as Emir when he was the Governor of Kano State.

This was made public on Wednesday by a high-ranking official of the Assembly, who expressed confidence that nothing can prevent the lawmakers from amending the law.

Recalls the Kano State House of Assembly has decided to revise the state emir’s deposition and appointment law.

The motion was put forward by Hussien Dala, the majority leader and representative of the Dala constituency, during the plenary session on Tuesday.

In 2020, former Governor Abdullahi Ganduje removed Alhaji Muhammadu Sanusi, the 14th Emir of Kano.

Giving an update on plans by the current crop of lawmakers in the state to revise the law, the high ranking official of the Assembly informed BBC Hausa that they have been ready a long time ago.

He added that the assembly would consider and pass the amendment on Thursday.

He said, “We were ready for this longtime ago and Only God can stop this amendment. We wanted all these emirs to go 20 days after this administration was inaugurated but here we are. So tomorrow(Thursday) there would be special session of the assembly to consider and pass the amendment.”

A few members of the assembly, including Abdul Labaran Madari, informed BBC Hausa that 12 All Progressives Congress (APC) members are currently against the proposed amendment.

Their opposition is based on the condition that none of the 5 Emirates will be disbanded, and that the Emir of Kano, Aminu Ado Bayero, should remain in office without being replaced by Muhammad Sanusi.

Although the New Nigeria Peoples Party (NNPP) lawmakers in the assembly have sufficient numbers to make the amendment, the opposition members will voice their dissent.

Madari mentioned that the governing party has successfully finalized its strategy for dismantling the Bichi emirate and reinstating the ousted Emir Sanusi.

He mentioned that the remaining Emirates would have jurisdiction over three local government areas each.