The Central Bank of Nigeria (CBN) is yet to speak on the next steps regarding the planned recapitalisation of Bureau De Change (BDC) operators, even as the official deadline of June 3, 2025, has come and gone without an update.
The silence has left many BDC operators uncertain about their future, as they struggle to meet the tough new capital requirements introduced by the apex bank last year. According to the new framework, the CBN introduced a two-tier licence regime for BDCs. Under the plan, Tier One BDCs are required to have a minimum capital base of N2 billion and can operate nationwide, while Tier Two operators must meet a N500 million minimum and are allowed to operate in only one state.
Despite months of preparation, industry insiders say only about 10 per cent of BDCs in Nigeria have been able to meet the new capital requirements as of the deadline. The sharp devaluation of the naira over the past two years — losing more than 100 per cent of its value — has worsened the cash flow challenges of the operators.
Beyond the capital requirement, the CBN’s new guidelines also introduced mandatory caution deposits, application fees, and licensing fees, placing additional financial strain on operators. As a result, many BDCs are either considering merging with others, reducing their workforce, or shutting down entirely.
The Association of Bureau De Change Operators of Nigeria (ABCON) has been at the forefront of appeals to the apex bank. Its President, Dr Aminu Gwadabe, warned that the CBN’s firm stance on recapitalisation could cause more harm than good if not handled properly.
According to reports, Gwadabe said the recapitalisation deadline remained “sacrosanct” for now but stressed the need for the CBN to reconsider its position, especially in light of the current economic hardship in the country.
“This is not the right time to hit the BDCs with a sledgehammer. If the CBN does not apply caution, we could see the collapse of the entire subsector, and that will affect both the market and the wider economy,” he said.
He acknowledged that the CBN had engaged with stakeholders and recognised the role BDCs play in Nigeria’s foreign exchange market. “The CBN acknowledges that our sub-sector is a critical retail end segment and an important tool for policy transmission,” he added.
Gwadabe further revealed that discussions with the CBN are still ongoing, and there is hope that a win-win solution will be reached. “There have been some give and take. Other matters are yet to be wrapped up, but we remain hopeful,” he said.
To meet the new requirements, some BDC operators are considering converting their firms into public limited liability companies (PLCs). This would make it easier to raise capital, attract new investors, and ensure wider participation in the evolving FX market.
ABCON is also pushing for fast-tracked licence approvals for new entrants willing to meet the CBN’s conditions. Gwadabe noted that the CBN had left a window open for new applications under the new licensing guidelines.
Industry watchers say the recapitalisation policy, while well-intentioned, must be balanced with the current realities facing small and medium-sized players in the foreign exchange market. Many argue that without financial support or phased implementation, the policy could end up reducing competition, driving up unemployment, and limiting access to forex at the grassroots level.
The CBN has yet to release an official statement following the June 3 deadline. Meanwhile, BDC operators await clarification, hoping for a more flexible approach from the apex bank in the days ahead.
