The Central Bank of Nigeria (CBN) has implemented new measures to regulate cash dollar purchases, limiting transactions to $500 per customer. Transactions exceeding this amount will be required to be transferred to the customer’s Naira bank account. For non-residents, regardless of their nationality, a Bureau De Change (BDC) will issue a prepaid Nigerian Naira (NGN) card as an alternative to transferring funds to a bank account.
The CBN’s revised regulatory and supervisory guidelines for bureau de change operations, released on Friday, outline specific limits for credit and total loading on the prepaid NGN card. These limits are aligned with Know Your Customer (KYC) requirements, ensuring the verification of customer identity and suitability.
The move aims to enhance transparency and reduce malpractices within the BDC ecosystem. The CBN’s efforts to sanitize the space and regulate the bureau de change operations are driven by the need to address challenges associated with the proliferation of BDCs.
Muda Yusuf, Director/CEO of the Centre for the Promotion of Private Enterprise, emphasized the necessity of these measures, highlighting the abundance of BDCs and the difficulties in regulating such a vast ecosystem. The CBN’s initiatives are intended to bring about a more organized and accountable environment in the foreign exchange sector.
Observers describe the introduction of the prepaid NGN card for non-resident customers a measure which provides a secure means for them to receive funds, as result aligning with global standards and reinforcing regulatory measures to combat malpractices in the financial sector.
