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CBN Limits Dollar From Bureau De Change To $10,000 For School Fees, $5000 For Medical Bills

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2 years ago

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The Central Bank of Nigeria has placed limits on the foreign exchange sales by Bureau De Change (BDC) operators in a new document titled: “Revised Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria”.
The circular with Ref: FPR/DIR/PUB/CIR/002/006 dated February 23, 2024 and titled: “Revised Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria – Exposure Draft,” was signed by the Director, Financial Policy and Regulation Department, Mr Haruna B. Mustafa.
In the reversed regulatory guidelines, CBN stated that BDCs may sell foreign currency in the equivalent of $4,000 and $5,000 for personal travel allowance (PTA) or business travel allowance (BTA), respectively, to an individual once every six months.
According to the Bankers’ bank the sale of foreign currencies to the intending travellers would have to be accompanied with their bank verification number (BVN) or tax identification number (TIN), duly completed e-form, valid international passport, valid visa, as well as valid international return ticket.
In addition, for BTA, the apex bank said letter of request from the corporate body stating the purpose of the visit addressed to the processing BDC, as well as certificate of the business registration or incorporation, must be submitted by customers.
Also, the CBN mandated that letter of invitation from the customer’s overseas business partner and tax clearance certificate, be presented by the customers.
“The amount of foreign currency sold and date of sale shall be endorsed on the passport. A photocopy of the documents, forex endorsement page and sales receipt shall be filed in a sequential order by the BDC,” CBN said.
CBN also said BDCs may sell foreign currency up to the equivalent of $5,000 to a customer for medical bills once a year.
Such bill, CBN said, shall be transferred from the BDC’s domiciliary account with a Nigerian bank.
“It shall be paid directly to the hospital and supported by valid visa, duly completed e-Form A, letter of reference from a specialist doctor, or a specialist hospital in Nigeria, and valid international passport,” the apex bank said.
Other necessary documents listed by the financial regulator include valid air ticket, and letter issued by the overseas specialist doctor stating the cost of treatment.
According to the apex bank, BDCs may sell foreign currency up to the equivalent of $10,000 to a customer for school fees once a year.
“Such fee, which shall be transferred from the BDC’s domiciliary account with a Nigerian bank, shall be paid directly to the school and supported by the following documents: duly completed e-Form A, evidence of admission/course programme, valid air ticket, and letter issued by the overseas specialist doctor stating the cost of treatment, and school bill/invoice,” CBN said.
“For post-graduate studies, photocopy of first degree certificate or its equivalent/certified true copy of statement of result by the awarding institution.
“The CBN may review the amounts and frequencies for sale of foreign exchange from time to time.”
A beneficiary of foreign currency sale may receive up to 25 percent of the foreign currency in cash, according to the CBN, and the remaining 75 percent shall be transferred to the customer electronically (to the customer’s Nigerian domiciliary account or prepaid travel card).
CBN, However, noted that the guidelines significantly enhances the regulatory framework for the operations of Bureau De Change as part of ongoing reforms of the Nigerian foreign exchange market.
The letter partly read: “Pursuant to the powers conferred under Section 56 of the Banks and Other Financial Institutions Act, 2020 (BOFIA), the Central Bank of Nigeria (CBN) hereby issues this draft revised Regulatory and Supervisory Guidelines for Bureau de Change (BDC) Operations in Nigeria for stakeholder comments and/or inputs.
The Guidelines significantly enhances the regulatory framework for the operations of Bureau De Change as part of ongoing reforms of the Nigerian foreign exchange market. The Guidelines revises the permissible activities, licensing requirements, corporate governance, and Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) provisions for BDCs.
“It also sets out new record-keeping and reporting requirements, among others,” the circular indicated. It advised that every comments should be directed to the Director, Financial Policy and Regulation Department Central Bank of Nigeria, Abuja with soft copies mailed to PolicyandRegulationDivision@cbn.gov.ng by March 4, 2024.
In the draft reversed guidelines, the apex bank stated that “No person shall carry on the business of BDC in Nigeria except with the prior authorization of the CBN.”
It defined a BDC as a company licensed by the CBN to carry on only retail foreign exchange business in Nigeria.
On non-eligible promoters, the CBN listed categories of people and organisations that shall not be allowed to participate in the ownership of BDCs, directly or indirectly among whom are:
“Commercial, merchant, non-interest and payment service banks; Other Financial Institutions (OFIs), including holding companies and payment service providers and Serving staff of financial services regulatory and supervisory agencies.
“Serving staff of regulated financial services providers; Governments at all levels; Public officers as defined in 5th Schedule Part IV of the Constitution of the Federal
“Non Governmental organizations; Cooperative societies; Charitable organizations; Academic and religious institutions; Non-Nigerian non-resident natural persons; Non-Nigerian resident natural persons and Non-resident non-regulated companies.
“Telecommunication services providers; Sanctioned individuals and entities; A shareholder in another BDC (whether directly or indirectly); Any other entity that the CBN may from time to time designate.”
Under Permissible Activities; the apex bank stated that a BDC may: “Acquire foreign currency from the sources listed in Section 4.0; Sell foreign exchange as detailed in Section 5.0; Open foreign currency and naira accounts with Commercial or Non-Interest Banks (CNIBs); Collaborate with their banks to issue prepaid cards. And Serve as cash-out points for International Money Transfer Operators (IMTOs).”
On the Non-Permissible Activities, the CBN stated that a BDC or its franchisee shall not engage in –
“Street-trading; Maintaining any type of account for any member of the public, including accepting any asset for safe keeping/custody.
“Taking deposits from or granting loans to members of the public in any currency and in any form; International outward transfers; Retail sale of foreign currencies to non-individuals, except for BTA
“Engaging in off-shore business or maintaining foreign correspondent relationship with any foreign establishment. Opening or maintaining any account with any bank or financial institution outside Nigeria. Acting as custodian of foreign currency on behalf of customers.
“International inward transfers, except for operators that serve as cash-out points for IMTOs. Borrowing sums which in aggregate exceed the equivalent of 30 per cent of its shareholders’ funds unimpaired by losses, in the BDC’s audited financial statements of the preceding year.
“Engaging in forwards, futures, options, or other derivative/speculative transactions. Obtaining foreign exchange from sources other than those listed in Section 4.0. Granting of loans and advances in any currency. Selling foreign exchange on credit to any customer. Engaging in any trade-related import activities.
“Serving as payment or collection agents on behalf of customers. Dealing in gold or other precious metals. Carrying on capital market, insurance and/or pension sector activities. Establishing subsidiaries.
Any foreign exchange transaction that involves illicit financial flows.
Financing of political activities. All other businesses not expressly permitted by this Guidelines. Any other activity as may from time to time be termed “non-permissible” by the CBN.
On the Sources of Foreign Currencies; the apex bank listed the following as conditions that shall apply for the sourcing of foreign currencies by BDCs:
“i.    A BDC may source foreign currency from:
        a.      Tourists.
        b.      Returnees from the diaspora.
        c.      Expatriates with foreign exchange inflows from work, travel, investment or their domiciliary accounts.
      “d.     Residents with foreign exchange inflows from work, travel, investment or their domiciliary accounts.
      e.       International Money Transfer Operators (IMTOs),
       f.      Embassies. g. Hotels that are authorised buyers of foreign currencies. h. The Nigerian Foreign Exchange Market (NFEM). i. Any other source that the CBN may specify.”
“ii.     Sellers of the equivalent of USD10,000 and above to a BDC are required to declare the source of the foreign exchange and comply with all AML/CFT/CPF regulations and foreign exchange laws and regulations.”
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FIRSTBANK FILES APPEAL

Published

9 months ago

on

March 26, 2025

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  • INJUNCTION AND STAY OF EXECUTION
  • CARGO REMAINS UNDER ARREST

In a surprising twist of events, its decision delivered today, the Federal High Court in a surprising shift from the true nature of FirstBank ’s claim held that the matter is not a maritime claim but rather, a simple case of debt recovery. This is quite surprising considering the fact that the order sought is to prevent further fraudulent sale of crude on the FPSO.

Shockingly, the court also held that the Arrest Order against the cargo, because it was exparte in nature, expired by effluxion of time within 14 days of its issuance.

Aggrieved by the decision, FirstBank lodged an appeal against the decision of the FHC. Also, FirstBank filed an application for an injunction of the court against GHL, pending the determination of the appeal. The Cargoes of Crude Oil on the FPSO TAMARA TOKONI remain arrested.

While FirstBank has great respect for the courts, it strongly disagrees with the ruling, which, in our view, constitutes a miscarriage of justice.

FirstBank remains committed to protecting and securing the interest of its members and will relentlessly pursue justice against mischievous debtors seeking to use the machinery of the law to perpetuate mischief and evade their responsibility to offset outstanding obligations.

About FirstBank

First Bank of Nigeria Limited “FirstBank”, established in 1894, is the premier bank in West Africa, a leading financial inclusion services provider in Africa, and a digital banking giant. 

FirstBank’s international footprints cut across three continents ─ Africa, Europe and Asia, with FirstBank UK Limited in London and Paris; FirstBank in The Democratic Republic of Congo, Ghana, The Gambia, Guinea and Sierra Leone; FBNBank in Senegal; and a FirstBank Representative Office in Beijing, China. All the subsidiary banks are fully registered by their respective Central Banks to provide full banking services.

Besides providing domestic banking services, the subsidiaries also engage in international cross-border transactions with FirstBank’s non-Nigerian subsidiaries, and the representative offices in Paris and China facilitate trade flows from Asia and Europe into Nigeria and other African countries.

For 130 years, FirstBank has built an outstanding reputation for solid relationships, good corporate governance, and a strong liquidity position, and has been at the forefront of promoting digital payment in the country with over 13 million cards issued to customers (the first bank to achieve such a milestone in Nigeria). FirstBank has continued to make significant investments in technology, innovation and transformation, and its cashless transaction drive has been steadily accentuated with virtually 23 million active FirstBank customers signed up on digital channels including the USSD Quick Banking service through the nationally renowned *894# Banking code.

With over 42 million customer accounts (including digital wallets) spread across Nigeria, UK and sub-Saharan Africa, the Bank provides a comprehensive range of retail and wholesale financial services through more than 820 business offices and over 233,500 agent locations spread across 772 out of the 774 Local Government Areas in Nigeria.

In addition to banking solutions and services, FirstBank provides pension fund custody services in Nigeria through First Pension Custodian Nigeria Limited and nominee and associated services through First Nominees Nigeria Limited.

FirstBank’s commitment to Diversity is shown in its policies, partnerships and initiatives such as its employees’ ratio of female to male (about 39%:61%; and 32% women in management) as well as the FirstBank Women Network, an initiative that seeks to address the gender gap and increase the participation of women at all levels within the organisation.  In addition, the Bank’s membership of the UN Women is an affirmation of a deliberate policy that is consistent with UN Women’s Women Empowerment’s Principles (WEPs) ─ Equal Opportunity, Inclusion, and Nondiscrimination.

For six consecutive years (2011 – 2016), FirstBank was named “Most Valuable Bank Brand in Nigeria” by the globally renowned The Banker Magazine of the Financial Times Group and “Best Retail Bank in Nigeria” eight times in a row, 2011 – 2018, by the Asian Banker International Excellence in Retail Financial Services Awards.

In 2022, the Top 100 African Bank rankings released by The Banker Magazine ranked FirstBank as number one in Nigeria in terms of Overall Performance, Profitability, Efficiency and Return on Risk. Also in 2022, the Bank received the “Most Innovative Retail Banking Product in Nigeria (FastTrack ATM)” and “Best Retail Bank in Nigeria” awards from International Finance Magazine. FirstBank was also awarded “Best Corporate Banking Western Africa, 2022” and “Best CSR Bank Western Africa, 2022’’ by Global Banking and Finance Magazine.

Other notable awards in FirstBank coffers include: “Best Bank in Nigeria” by Global Finance magazine – fifteen times in a row; “Best Private Bank in Nigeria-2021” awarded by Global Finance magazine; “Best Internet Banking Nigeria” and ‘’Best CSR Bank Africa’’ by International Business Magazine.

In 2023, FirstBank received notable awards including “Best Private Bank for Sustainable Investing in Africa 2023” by Global Finance Awards; “Best Sustainable Bank in Nigeria 2023” by International Investors Awards; “Best Bespoke Banking Services in Nigeria 2023” by International Investors Awards; “Best Financial Inclusion Service Provider in Nigeria 2023” by Digital Banker Africa; and “African Bank of the Year” by African Leadership Magazine; ’’Best Corporate Bank in Nigeria 2023’’ by Euromoney Awards and ‘’Most Innovative Banking Brand – Nigeria 2023’’ by Global Brands Award.

Other laudable feats in 2023 include FirstBank’s international recognitions on major indices by Euromoney Market Leaders, an independent global assessment of the leading financial service providers where FirstBank was crowned:

Market Leader: (tier-1 recognition) in Corporate Banking,

Market Leader: (tier -1 recognition) in Digital Solutions,

Highly Regarded: Corporate and Social Responsibility (CSR),

Highly Regarded: Environmental, Social and Governance (ESG), Notable: in SME Banking.

Significantly, FirstBank’s Global Credit Rating was A+ with a positive outlook while ratings by Fitch and Standard & Poor’s were A (nga) and ngBBB+ respectively both with Stable outlooks as at September 2023. FirstBank maintained the same level of international credit ratings as the sovereign; a milestone that was achieved in 2022 for the first time since 2015.

Our vision is ‘To be Africa’s Bank of first choice’ and our mission is ‘To remain true to our name by providing the best financial services possible. This commitment is anchored on our core values of EPIC – Entrepreneurship, Professionalism, Innovation and Customer-Centricity. Our strategic ambition is ‘To deliver accelerated growth in profitability through customer-led innovation and disciplined execution and our brand promise is always to deliver the ultimate “gold standard” of value and excellence to position You First in every respect.

Olayinka Ijabiyi

Ag. Group Head, Marketing & Corporate Communications

First Bank of Nigeria Limited 

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FirstBank holds groundbreaking ceremony for new 40-storey eco-friendly HQs in Lagos

Published

10 months ago

on

March 5, 2025

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FirstBank of Nigeria Limited, West Africa’s premier bank and a key player in financial inclusion, will today (Wednesday) host the groundbreaking ceremony for its new, green-certified headquarters in Eko Atlantic City, Lagos.

The 40-storey building, set to become the tallest structure in Nigeria, promises to be a technological and environmental marvel, with advanced, eco-friendly construction designed to set new benchmarks in Africa’s financial services sector.

A statement on Wednesday signed by Olayinka Ijabiyi, Ag. Group Head, Marketing & Corporate Communications, First Bank said the ceremony marks the beginning of a transformative journey that highlights commitment to innovation, excellence, and customer satisfaction.

“The new headquarters will feature a sustainable, green-certified design aimed at reducing operational costs while positioning FirstBank as a leader in sustainable banking practices,” it said.

Olusegun Alebiosu, CEO of FirstBank Group, stated, “We are thrilled to reach this important milestone in our pursuit of excellence. Our new head office will be a world-class structure that reflects our dedication to innovation, sustainability, and customer satisfaction. We believe this development will play a key role in driving economic growth and long-term value for all our stakeholders across Africa.”

With a legacy of over 130 years, FirstBank has consistently been a trailblazer in innovation, customer service, and sustainable business practices. The bank operates across nine countries on three continents, reinforcing its international presence.

Femi Otedola, Chairman of FirstHoldCo, remarked, “Today’s ceremony underscores the importance of collaboration and the unwavering support from various sectors in realizing our vision for the new headquarters. We are deeply grateful for the continued support from our customers and stakeholders as we bring this vision to life.”

The groundbreaking event will be attended by distinguished guests, including the President of the Federal Republic of Nigeria, Senator Bola Ahmed Tinubu GCFR, as well as senators, lawmakers, state governors, federal ministers, and key figures from various industries. This event marks the beginning of an exciting new chapter in FirstBank’s rich history, cementing its position as a leader in Africa’s financial landscape.

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‘No Disparity,’ NUPRC Confirmed 1.8m bopd NNPC Ltd Oil Production Figures At NAPE Conference’

Published

1 year ago

on

November 25, 2024

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1.54m bopd production figure (quoted by THISDAY for October) is for September, not October,’ What NUPRC boss told highest body of petroleum explorationists and stakeholders in Lagos.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed the 1.8 million barrels of per day (bopd) production figures earlier released by the Nigerian National Petroleum Company Limited (NNPC Limited) at the conference organised by the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos.

This newspaper, which reported the Commission boss, Gbenga Komolafe, to have said this to stakeholders, maintained that the development is contrary to a report making the round that the NUPRC contradicted the NNPC Ltd figures.

Speaking at the 42nd Nigerian Association of Petroleum Explorationists Annual International Conference & Exhibition in Lagos, Komolafe said that Nigeria’s crude oil output, including condensate, increased by 16.56 per cent to 1.8 million barrels per day, bpd in October 2024, from 1.54 million bpd in September 2024.

He said that as a result of this feat, Nigeria has exceeded the 1.5 million bpd quota of the Organisation of Petroleum Exporting Countries, OPEC.”This represents an increase of 253,710,bpd to reach 1.8 million bpd in October, up from 1.54 million bpd in September 2024, representing 16.56 per cent month-on-month rise,” he said.

Represented by Enorense Amadasu, Executive Commissioner for Development and Production at NUPRC, the NUPRC boss declared that efforts were underway to further increase oil output to two million bpd by December 2024.

Highlighting the theme of the conference, “Resolving the Nigerian Energy Trilemma: Energy Security, Sustainable Growth and Affordability”, Komolafe, said the organization is committed to expanding Nigeria’s oil production capacity.

Checks by this newspaper showed that this is the same position of the NNPC Ltd, which said it and its partners have revved up crude oil and gas production to 1.8 million barrels per day (mbpd) and 7.4billion standard cubic feet (bscf) per day.

The company announced this at a press briefing, maintaining that the feat was achieved in compliance with the mandate of President Bola Ahmed Tinubu.This newspaper gathered that these figures are, contrary to misconstrued report, the same with the ones announced by the NUPRC.

Disparity Where There Is None A THISDAY review of the delayed October production figures by the NUPRC, which is the oil and gas sector upstream regulator, claimed that Nigeria produced 1.538 million bpd of crude oil and condensate.

The three-month low production data released by the NUPRC, the report claimed, contradicted the report announced by the national oil company and the Ministry of Petroleum Resources (Oil), which specifically put production at 1.808 million bpd.

Looking Beyond 1.8m bopd, Speaking on the development, the Group Chief Executive Officer, Mr. Mele Kyari, who reiterated that the Company revved up oroduction to 1.8 m bopd, declared the target to even increase the production to 2 million bopd.

Kyari congratulated the Production War Room Team that anchored the production recovery process.“The team has done a great job in driving this project of not just production recovery but also escalating production to expected levels that are in the short and long terms acceptable to our shareholders based on the mandates that we have from the President, the Honourable Minister, and the Board,” Kyari explained. Giving details of the efforts of the Production War Room, the Chief War Room Coordinator, and Senior Business Adviser to the Group Chief Executive Officer, Mr. Lawal Musa disclosed that the feat was achieved through the collaborative efforts of Joint Venture and Production Sharing Contract partners, the Office of the National Security Adviser, as well as government and private security agencies.

He said the interventions led to the recovery of production cut across every segment of the production chain with security agencies closely monitoring the pipelines. He stressed that when the Production War Room team was inaugurated on the 25th June 2024, production was at 1.430mbpd, but the team swung into action, culminating into it sustaining the production recovery to 1.7mbpd in August and hitting the current 1.808mbpd in November.

“We are confident that with this same momentum and with the active collaboration of all stakeholders, especially on the security front, we can see the possibility of getting to 2mbpd by the end of the year,” he stated.

Also speaking on the development, Chairman of the NNPC Ltd Board of Directors, Chief Pius Akinyelure, who also congratulated the team, said he was happy to be part of the production recovery process, adding: “today, I will leave this place with my heart full of joy”.

He charged the Company’s Management to come up with a cashflow projection based on the new production figures to facilitate planning, stressing that he was looking forward to further production increase to 3mbpd.

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