CAC Gives BDCs 90 Days To Withdraw Certificates After CBN’s Revocation Of Licence

The Corporates Affairs Commission (CAC) has issued a three-month ultimatum to Bureau de Change operators asking them to change their names and objects or risk a withdrawal of their certificate.

The warning is linked to the withdrawal of all BDC licenses by the Central Bank of Nigeria.

The CBN in March withdrew licenses of BDCs and categorised them into Tier 1 & Tier 2 with a capital requirement of N2bn and N500m respectively.

In a fresh development, the CAC said it intends to cancel certificates of incorporation of BDCs whose licenses were revoked by the CBN.

The CAC said it is empowered by section 8(1)(e ) of the Companies and Allied Matters to withdraw their licenses.

The CAC said, “The general public is hereby informed that 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 27, 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 the names and objects of such companies.

“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.”