Thousands of Bureau De Change (BDC) operators across Nigeria face imminent deregistration following the expiration of the Central Bank of Nigeria (CBN)’s recapitalization deadline on Monday, June 3, 2025. The policy, introduced in May 2024 and later extended by six months, mandates significantly higher capital requirements that many operators have failed to meet.
According to the Association of Bureau De Change Operators of Nigeria (ABCON), only about 10 percent of the 4,000 registered BDC operators in the country met the new capital thresholds. This means that approximately 3,600 operators are now at risk of losing their licences and being shut out of the foreign exchange market.
The CBN’s updated guidelines split BDCs into two tiers. Tier 1 operators, allowed to operate nationwide, must have a minimum capital base of ₦2 billion, while Tier 2 operators, limited to a single state, are required to have ₦500 million. In addition, the CBN imposed non-refundable application and licensing fees of ₦5 million and ₦2 million for Tier 1 and Tier 2 licences respectively. Both categories were given an initial six-month deadline to reapply and meet the capital requirement, which was later extended to June 3, 2025.
Despite the extension and ongoing consultations, ABCON has confirmed that compliance levels remain alarmingly low. In an interview with the News Agency of Nigeria (NAN) following a final stakeholder meeting in Lagos, ABCON President Dr. Aminu Gwadabe stated that, “The deadline for the existing BDCs for recapitalisation by June 3rd, 2025 remains sacrosanct. Also, the minimum capital requirements of N2 billion for Tier 1 and N500 million for Tier 2 remain sacrosanct.”
Gwadabe acknowledged the CBN’s willingness to engage with stakeholders and described the discussions as constructive. “First, we want to thank the management of the Central Bank for their enhanced consultations with stakeholders,” he said. “The CBN had acknowledged that our sub-sector is a critical retail end sub-sector and that BDCs are an important and potent tool of CBN’s policy transmission mechanisms. Discussions are ongoing and with some give and take.”
However, he warned of the consequences of strict implementation without adequate support. “Hitting the BDCs with a sledgehammer now may lead to the sector’s collapse,” he cautioned.
Concerns are mounting over the potential social and economic fallout. ABCON has repeatedly raised the alarm about massive job losses, which could arise from the forced exit of over 3,600 operators. “We have raised concerns over impending massive job losses,” Gwadabe said. “This would have adverse effects on the economy, with millions of jobs at stake as a result of the deadline.”
To cushion the impact and prevent widespread closures, the association has initiated strategic measures. These include encouraging mergers among smaller BDCs, lobbying for phased implementation, and exploring business models such as forming public limited liability companies to attract new investors. “ABCON has initiated several strategic measures to mitigate job losses, including: continued engagement with the CBN and relevant financial regulators; lobbying efforts to influence policy adjustments; encouraging mergers and investor acquisitions to help smaller operators meet financial thresholds,” Gwadabe explained.
He also emphasized that new opportunities still exist for those interested in entering the sector. “The window for new licences was open for prospective investors with an agreement to accelerate the licencing process,” he said. “Other matters are yet to be wrapped up with higher hopes of reaching a win-win situation.”
The Central Bank of Nigeria (CBN) has not yet announced its next steps regarding the recapitalisation of Bureau de Change (BDC) operators, even as the June 3, 2025 deadline elapsed yesterday.
