Many Bureau De Change (BDC) operators who retained their business names after their licenses were revoked, have expressed shock at a recent directive by the Corporate Affairs Commission (CAC) to choose new identities that would not give the public the impression that they are still in the business.
The former operators are 4,173 in number whose licenses were recently revoked by the Central Bank of Nigeria (CBN). They were asked to effect the name change within three months.
The CAC in a notice issued recently said their failure to change the names with which they were registered as companies would result in the cancellation of their certificate of incorporation and dissolution.
While urging shareholders and directors of the companies to take action, the CAC said details of the affected companies have also been published on its website for them to re-confirm.
Citing section 8 of the Companies and Allied Matters Act 2020 as the basis of its power to enforce the name change, the Commission said “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.”
It was recently reported that CBN) revoked the operational licenses of more than 4,173 Bureau De Change (BDC) operators registered under its oversight. The apex bank indicated that the revocation was due to the failure of the affected BDCs to comply with certain regulatory guidelines.
Specifically, the apex bank said the companies failed to comply with the required payment of all necessary fees, including license renewal, within the stipulated period in line with the guidelines; rendition of returns in line with the guidelines; and compliance with guidelines, directives and circulars of the CBN, particularly Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT) and Counter-Proliferation Financing (CPF) regulations.
CBN’s spokesperson, Sidi Hakama said the bank acted in exercise of the powers conferred on it under the Bank and Other Financial Institutions Act (BOFIA) 2020, Act No. 5 and the Revised Operational Guidelines for Bureau De Change 2015.
