CAC To Cancel Certificates of Over 4,000 BDCs After CBN's Decision, Gives Deadline
- The Corporate Affairs Commission is threatening to revoke the certificates of over 4,000 Bureau De Change operators
- The commission's action is coming after the Central Bank of Nigeria's decision to revoke licences of the BDC operators
- The CBN's crackdown on BDCs comes amid the continued depreciation of the naira in the official and unofficial markets
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends
The Corporate Affairs Commission (CAC) has mandated Bureau De Change companies whose licences were recently revoked by the Central Bank of Nigeria (CBN) to change their names within three months.
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Legit.ng earlier reported that in February, the CBN withdrew the licences of 4,173 BDC operators for failing to adhere to regulatory guidelines.
According to the apex bank, the affected BDCs were found to have breached at least one of the bank’s regulatory requirements.
BDCs risk losing licences
Following up on the CBN directive, the CAC, in a notice, warned that all affected BDCs must comply with its directive or face cancellation of their certificates of incorporation and subsequent dissolution.
Citing section 8 of the Companies and Allied Matters Act 2020 as the basis for its enforcement authority, the CAC stated:
“Following the revocation of the operational licenses of 4,173 Bureau De Change companies by the Central Bank of Nigeria vide a Federal Republic of Nigeria Official Gazette (Vol. 111) No. 37 of February 2024 for non-compliance with Regulatory Standards, the Corporate Affairs Commission in exercise of its powers under section 8(1) (e) of the Companies and Allied Matters Act, 2020 advises these companies to within three months from the date of this publication, change names and objects.
“Failure to change the names and objects within the stipulated time frame shall result in cancellation of certificate of incorporation and dissolution.
"It is to be noted that it is unlawful for a company whose certificate has been deemed dissolved to carry on business.”
ABCON on improving BDCs operation
ABCON President Aminu Gwadabe, the Association of Bureaux De Change Operators of Nigeria (ABCON) in a chat with Legit.ng confirmed that the association is working to increase transparency.
He said:
"Yes, at our leadership levels, we are resolute despite the challenges, to continue upgrading our processes, transparency, compliance with AML/CFT measures, and ensuring customer and public confidence in this regard."
POS operators not happy with CAC
In a related development, Legit.ng reported that Nigerian banks and fintech companies are set to block the accounts of PoS operators who fail to register their businesses.
The banks are now warning that failure to comply with the CAC registration requirement will result in account freezing.
Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.
Aminu Gwadabe (President at Association of Bureaux de Change Operators of Nigeria) Alhaji Aminu Gwadabe is the president of the Association of Bureau De Change Operators of Nigeria (ABCON) that represents the interests of licensed Bureau de Change operators in Nigeria. Gwadabe comments on issues relating to the foreign exchange market, currency exchange rates, and economic policies in Nigeria over the years.
