CBN Scraps BDC Licence Renewal Fees, Cites FX Volatility Abuse.

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The Central Bank of Nigeria (CBN) has waived the non-refundable annual license renewal fee for existing Bureau de Change (BDC) operators, effective immediately. This decision follows the ongoing transition to new BDC regulatory structures, as stated in a circular signed by Acting Director, Finance Policy and Regulation Department, John Sonojah.

According to the circular, “This is to inform all existing bureaux de change that, further to the Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria (2024) and the ongoing transition to the new BDC regulatory structure, the CBN has approved the waiver of the 2025 license renewal fee.”

The CBN urged operators who have already paid for the 2025 license renewal to apply for a refund. The apex bank’s governor, Yemi Cardoso, emphasized the importance of reforms in redirecting the economy and restoring order to the FX market. “Reforms, including discontinuation of quasi-fiscal interventions, unifying the exchange rate windows, clearing a backlog of foreign exchange commitments, and recalibrating monetary policy tools, were all necessary,” he said.

The Electronic Foreign Exchange Matching System (EFEMS), introduced in December 2024, has improved market transparency and efficiency, with the naira appreciating significantly from N1,663.90 to over N1,540. Cardoso attributed the fluctuation in the naira’s value to unethical behaviors and systemic abuses, warning that any attempts to revert to such practices would face swift sanctions.

The CBN has made significant progress in growing the external reserves, which increased by 12.74% to $40.68 billion at the end of 2024. Cardoso emphasized the importance of exchange rate stability, noting that it influences critical indicators such as the balance of payments, external reserves, and economic growth.

The FX Code, launched by the CBN, is built on six core principles: ethics, governance, execution, information sharing, risk management, and compliance. Cardoso stressed that adherence to these principles is crucial for restoring public trust in the financial system. “These principles align with international standards while addressing Nigeria’s unique challenges,” he said.

The CBN chief noted that the FX Code is not just a set of recommendations but an enforceable framework. “Violations will be met with penalties and administrative actions,” he warned. “Market participants must recognize that adherence to the principles is not merely about compliance but also about restoring public trust in the financial system.”

Cardoso emphasized that the FX Code is part of the CBN’s renewed focus on compliance across the financial services industry. “Self-regulation and conduct are at the core of the changes in culture we expect to see at play in the industry,” he said.

The CBN governor also highlighted the importance of transparency and accountability in the FX market. “We will continue to work with all stakeholders to ensure that the FX market operates in a transparent and efficient manner,” he said.

In conclusion, Cardoso emphasized the CBN’s commitment to maintaining stability in the FX market and promoting economic growth. “We will continue to work tirelessly to ensure that the FX market operates in a manner that supports the growth and development of the Nigerian economy,” he said.

The waiver of the license renewal fee for BDC operators is expected to provide relief to the operators and help to stimulate economic activity in the country. The CBN’s efforts to promote transparency and accountability in the FX market are also expected to help to build confidence in the market and attract foreign investment.

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