CAC Orders 4,173 Bureau De Change to Change Names Following CBN Licence Revocation

The Corporate Affairs Commission (CAC) has asked 4,173 exchanges whose licenses were recently revoked by the Central Bank of Nigeria (CBN) to change their names within three months.
In a notice issued on Wednesday, the commission said failure to change the names under which they are registered as companies will see their articles of association revoked and the companies dissolved.
The CAC urged shareholders and directors of the companies to take action, saying details of the affected companies have also been published on its website for reconfirmation.

The Commission cited Section 8 of the Companies and Related Matters Act 2020 as the basis for its power to enforce name changes, saying, “Following the cancellation of the business licenses of 4,173 change bureaus by the central government, the Bank of Nigeria, within its powers under Section 8(1), will appeal to the Corporate Affairs Commission by the issuance of Notice in the Official Gazette of the Federal Republic of Nigeria (Vol. 111) No. 37 of February 2024 for non-compliance with Regulatory Standards, the Corporate Affairs Commission in the exercise of its powers under section 8(1) (e) of the Companies and Allied Matters Act, 2020 advises such companies to change their name and corporate name within three months from the date of publication of the same.

“Failure to change the name and objects within the stipulated time period shall result in the revocation of the articles of incorporation and dissolution of the company.
It should be noted that it is unlawful for a company whose certificate has been deemed dissolved to continue business.”
Umpirenews recently reported that the Central Bank (CBN) has registered over 4,173 operating licenses under its supervision for Business Dealer Exchange Operators (BDCs).
The central bank said the revocation was due to the affected BDCs failing to comply with certain regulatory guidelines. Specifically, the central bank said the companies failed to pay all required fees including license renewal within the stipulated time period as per the guidelines and failed to file returns as per the guidelines.
Compliance with CBN policies, instructions, and circulars especially the Anti-Money Laundering (AML), Counter-Terrorist Financing (CFT), and Counter-Proliferation Financing (CPF) regulations.
CBN Spokesperson Sidi Hakama said the bank acted in accordance with the powers conferred on it under the Banks and Other Financial Institutions Act, 2020 (BOFIA), Act No.5, and the revised Foreign Exchange Operations Guidelines, 2015 (the “Directive)”.