CBN waives BDC licence renewal fees, links FX volatility to abuse

•Knocks politicians for currency crisis
The Central Bank of Nigeria (CBN) has waived the non-refundable annual licence renewal fee for existing Bureau de Change (BDC) operators.

In a circular sent to BDC operators and stakeholders in the financial services industry and signed by the Acting Director, Finance Policy and Regulation department, John Sonojah, the bank said the decision follows an ongoing transition to the new BDC regulatory structures.

“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 licence renewal fee, effective immediately,” the circular said.

The apex bank urged operators that have paid for the 2025 licence renewal to apply for a refund.

He advised the affected BDC operators to apply to the Director, Financial Policy and Regulation Department for a refund to the account from which the payment was made.

“The CBN remains committed to fostering stability, transparency, and efficiency in the foreign exchange (FX) market while ensuring that operators align with the revised regulatory framework,” he noted.

This comes as the Governor, Yemi Cardoso, blamed unethical behaviours and systemic abuses for the fluctuation in the movement of the naira.

Speaking in Abuja yesterday at the launch of the Nigeria FX Code, Cardoso argued that the system itself played a key role in the challenges of the past.

He blamed those who had access to political power or their complicit participants for the fate of the national currency.

“We will not tolerate any attempts to revert to those practices. Any individual or institution that violates the FX Code will face swift and decisive sanctions,” he added.

On the state of the external reserves, Cardoso said: “Our external reserves grew by 12.74 per cent, reaching $40.68 billion at the end of 2024. This achievement reflects the effectiveness of reforms aimed at paying off legacy FX obligations and growing reserves organically.”

Apart from the growing external reserves, Cardoso insisted that the journey towards market reform is yielding results, explaining that last year was marked by structural reforms that sought to return the naira to a market price and ease volatility as several distortions were removed from the 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 to redirect the course of our economy, restore order and credibility to our FX market, and refocus the CBN on its core mandates,” he said.

The apex bank boss highlighted the positive effects the Electronic Foreign Exchange Matching System (EFEMS) has had since its introduction in December 2024.

He noted that EFEMS has improved market transparency and efficiency.
Since its launch, the naira has appreciated significantly from N1,663.90 on December 2, to over N1,540 as of Monday.

Cardoso stressed that exchange rate stability is a cornerstone of macroeconomic health for an economy like Nigeria.

He argued that beyond daily market rates, the exchange rate influences critical indicators such as the balance of payments, external reserves, international trade, inflation, economic growth and foreign investment.

He maintained that the FX Code was not just a set of recommendations, but an enforceable framework.

Under the CBN Act 2007 and BOFIA Act 2020, he explained, violations would be met with penalties and administrative actions, adding that market participants must recognise that adherence to the principles was not merely about compliance but also about restoring public trust in the financial system.

The CBN chief noted that beyond the FX market, the FX Code formed part of his team’s renewed focus on compliance across the financial services industry.

Cardoso said self-regulation and conduct are at the core of the changes in culture CBN expects to see at play in the industry, he said.

The FX Code is built on six core principles – ethics, governance, execution, information sharing, risk management and compliance as well as confirmation and settlement processes.

“These principles align with international standards while addressing Nigeria’s unique challenges. Together, they provide the foundation for a resilient and transparent market that inspires confidence among both domestic and international participants,” the CBN boss said.