CBN waives licence renewal fee for existing BDC operators, launches FX code
By Seun Ibiyemi
The Central Bank of Nigeria (CBN) has announced the immediate waiver of the 2025 licence renewal fee for existing Bureau De Change (BDC) operators, marking a significant move to support the sector as part of the ongoing transition to a new regulatory framework. In addition to this, the CBN officially launched the Nigeria Foreign Exchange (FX) Code, a key initiative aimed at improving transparency and ethical conduct within the foreign exchange market.
This waiver, which is part of the CBN’s efforts to modernise and regulate the BDC sector, will ease the financial burden on operators and encourage compliance with the newly revised regulatory structure. The CBN has advised any BDC operator who has already paid the 2025 licence renewal fee to apply for a refund to the account from which the payment was made.
The move is in line with the CBN’s broader strategy to ensure that operators align with the updated guidelines under the Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria, 2024.
At the official launch of the FX Code in Abuja on Tuesday, CBN Governor, Olayemi Cardoso, reiterated the Bank’s strong commitment to fostering transparency and enforcing ethical standards in Nigeria’s foreign exchange market.
The FX Code is a groundbreaking initiative that sets out clear, enforceable standards for ethical behaviour, governance, and compliance. It aims to address the systemic abuses and unethical practices that have characterised the market in the past, while promoting a more accountable and efficient system.
Cardoso made it clear that adherence to the principles outlined in the FX Code is non-negotiable, warning that any violations will attract severe penalties, as stipulated by the CBN Act of 2007 and the Banks and Other Financial Institutions Act (BOFIA) of 2020.
“The FX Code marks a new era of compliance and accountability,” he stated. “This is not just a set of recommendations; it is an enforceable framework. Under the CBN Act 2007 and BOFIA Act 2020, violations will be met with penalties and administrative actions.”
The CBN Governor emphasised that market participants must view compliance not just as a legal obligation, but as a crucial step in restoring public trust in Nigeria’s financial system. He also called on Board Chairs, Managing Directors, and Chief Compliance Officers to lead by example in embedding the principles of the FX Code within their organisations.
The FX Code is built on six core principles: Ethics, Governance, Execution, Information Sharing, Risk Management and Compliance, and Confirmation and Settlement Processes. These principles are designed to align with international best practices while addressing Nigeria’s unique challenges. The goal is to create a foreign exchange market that is both transparent and efficient, with participants who are held accountable for their actions.
Cardoso also highlighted the tangible outcomes of recent reforms in the FX market, particularly the introduction of the Electronic Foreign Exchange Matching System (EFEMS) in December 2024. This system has significantly enhanced the transparency and efficiency of the market.
As a result, the naira has appreciated from N1,663.90 in early December 2024 to N1,536.72 as of January 27, 2025. Additionally, Nigeria’s external reserves have increased by 12.74%, reaching $40.68 billion by the end of 2024. These developments demonstrate the positive impact of the CBN’s reforms and the ongoing efforts to stabilise the foreign exchange market.
The Governor reaffirmed the CBN’s commitment to ensuring a transparent and efficient FX market that supports Nigeria’s economic stability.
“The FX Code is a binding commitment to accountability and transparency—and we must all play our part,” he stated, thanking key stakeholders, including the Financial Markets Dealers Association and the Global Foreign Exchange Committee, for their collaboration in the development of the Code.
The launch of the FX Code represents a significant milestone in Nigeria’s journey to restore trust and integrity in its financial markets. The CBN has made it clear that the Code is not merely a set of guidelines but a legal and enforceable framework that will drive compliance in the market.
With the FX Code now officially in force, the CBN has also signalled its intent to hold financial institutions accountable, ensuring that fairness, trust, and market-driven practices remain at the core of Nigeria’s foreign exchange operations.
In addition to the FX Code, the CBN’s decision to waive the 2025 licence renewal fee for BDC operators further underlines its commitment to supporting the sector as it transitions to the new regulatory structure. The move is expected to provide immediate financial relief to operators, while ensuring that they align with the revised framework, which includes stricter compliance standards and new capital requirements.
The CBN recently issued guidelines regulating the activities of BDC operators, which set the minimum capital base for Tier-1 BDCs at N2 billion and N500 million for Tier-2 BDCs. The guidelines also removed the mandatory caution deposits for both Tier-1 and Tier-2 BDC licence holders. These new guidelines are set to take effect from June 3, 2024, and existing BDCs have been instructed to reapply for new licences that meet the minimum capital requirements for their chosen category.
Furthermore, the CBN has implemented a ban on certain activities, such as street trading, international outward transfers, financing political activities, and dealing in gold, precious metals, or cryptocurrencies. BDCs are also now required to channel transactions above USD500 through digital means.
With these initiatives, the CBN has made clear its intent to reshape Nigeria’s foreign exchange market, creating a more transparent, efficient, and ethical environment. The immediate waiver of the licence renewal fee for BDC operators and the launch of the FX Code are just the latest steps in this ongoing process.
