Joy Agwunobi
The Corporate Affairs Commission (CAC) has ordered the 4,173 affected BDCs in Nigeria to modify their registered business names within three months or face license revocation. This move follows the CBN’s decision to revoke their licenses, effectively rendering them unable to carry out currency exchange services.
The CAC, in an official statement released recently, warned the 4,173 BDCs that if they fail to comply with the name change directive, their certificate of incorporation will be canceled, ultimately leading to the dissolution of their companies. The commission further emphasised that this action is being carried out under the authority granted to them by section 8(1)(e) of the Companies and Allied Matters Act 2020, which gives the Commission the power to enforce regulations and requirements related to corporate registration and compliance.
Prior to the recent announcement, the CAC issued a deadline of October 10, 2024 for the 4,173 affected BDC firms to finalise their business name changes, and has made public a list of these companies on its website. The commission also called upon shareholders and directors of these companies to visit the website, confirm that their companies are listed, and take the required steps to initiate the name change process.
The CAC’s directive for name changes is a consequence of the CBN’s earlier decision to revoke the licences of these BDCs for contravening regulatory requirements. In March 2024, the CBN took the step to terminate the licenses of these BDCs due to their continued non-compliance with regulatory standards, including failure to pay required fees and to adhere to Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) regulations.
Speaking on behalf of the CBN, Sidi Hakama, the bank’s spokesperson, affirmed that the revocation of licenses was in compliance with the Bank and Other Financial Institutions Act (BOFIA) 2020 and the Revised Operational Guidelines for Bureaux De Change 2015.
The CBN had, in February 2024, released draft guidelines with the intention of modernising BDC operations by mandating them to integrate their systems with the CBN and the Nigeria Interbank Settlement System (NIBSS) as part of the licensing process.
