The Central Bank of Nigeria (CBN) has revoked licenses of 2,698 Bureau De Changes (BDCs), leaving only 2,991 BDCs to continue in operations.
This represents about 47.43 per cent of the initial total number of BDCs.
Analysts say the move is to curb round tripping and ensure stability of the naira at real value.
So far, in spite of efforts to allow the naira float to its true value have been frustrated by numerous black market activities.
In a document titled: “List of CBN Licensed Bureaux De Change As at December 31, 2021,” released by the Central Bank in 2022 and with the reference REF: FPR/DIR/PUB/CIR/001/037, the CBN had authorised 5,689 black market dealers.
The number of operators increased from 74 in 2005 to 5,689 in 2021 before the Bola Tinubu administration.
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Since the naira was floated by the CBN in June, the currency has fallen to N795.28 at the Investors’ and Exporters’ FX window.
The situation is worse at the parallel market where it closed at N820 per dollar, the British pound closed N1095 and the Euro N905.
Reacting to the development, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, said the trimming of BDC operators cannot be disassociated from the discussions on sanitising the black market.
Yusuf said, “There was a time they were talking about reviewing the capitalization for the BDC. Perhaps, it is only those who met the capital requirement that have been now approved for operations.
“This may have been responsible. You know there were too many and they were just using the BDCs to favour people. When the CBN was still giving out dollars to BDCS most people were just making free money left and right using the BDCs and the authorities, some of them were using it as favour to people for key reforms, including raising the capitalisation requirements for BDC operators. Additionally, the council proposed that Nigerian banks be allowed to act as primary dealers in supplying the forex market,” he said.