See why CAC is set to cancel certificates of over 4,000 BDCs

• The Corporate Affairs Commission is threatening to revoke the certificates of over 4,000 Bureau De Change operator
• The commission's decision is a from the fall out of the Central Bank of Nigeria's decision to revoke their licence
• The CBN's crackdown on BDC 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 licenses were recently revoked by the Central Bank of Nigeria (CBN) to change their names within three months.

Bureau de Change have 3 months to change their names Photo credit: Benson Ibeabuchi
Source: Getty Images

Legit.ng earlier reported that in February, the CBN withdrew the licences of 4,173 BDC operators for failing to adhere to regulatory guidelines.

This action was detailed in a statement by the CBN's acting director of corporate communications, Sidi Hakama.

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According to the apex bank, the affected BDCs were found wanting to breach at least one of the bank’s regulatory requirements.

BDCs risk losing licences

Following up on the CBN directive, in a notice the CAC 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.”

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.

Source: Legit.ng