CBN Recapitalization Deadline For BDC Operators will expires today.
NewsOnline Nigeria reports that the Central Bank of Nigeria’s (CBN) deadline for the mandatory recapitalization of Bureau De Change (BDC) operators officially expires today, triggering widespread concern across the foreign exchange market and prompting an urgent appeal from operators to extend the deadline and review capital requirements to avoid a looming jobs crisis.
The Association of Bureau De Change Operators of Nigeria (ABCON), under the leadership of President Dr. Aminu Gwadabe, is calling for immediate intervention from the apex bank to prevent what it warns could be the loss of over 3 million jobs nationwide.
Only 5% of BDCs Meet New Capital Requirements
In May 2024, the CBN revised the minimum capital base for BDC operators to N2 billion for Tier 1 licenses and N500 million for Tier 2 licenses, up from the previous N35 million. Following initial backlash, the CBN granted a six-month extension in November 2024, setting June 3, 2025, as the final deadline.
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Despite the grace period, Gwadabe revealed that less than 5% of licensed BDC operators have successfully complied with the new requirements.
“The way forward is an immediate extension of the recapitalization deadline and a deliberate review of financial thresholds. Without this, we risk massive unemployment and disruption in the FX ecosystem,” said Gwadabe.
ABCON Raises Alarm Over Mass Layoffs and Sector Collapse
The expiration of the recapitalization deadline has sparked fears of mass shutdowns across the sector. With millions of direct and indirect jobs tied to the BDC ecosystem, stakeholders are warning of catastrophic fallout if the CBN fails to act swiftly.
“The CBN should re-engage operators during this critical period to calm the tension, uncertainty, and anxiety in the market,” Gwadabe added.
ABCON’s Urgent Recommendations to Save the Industry
To mitigate the potential crisis, ABCON is proposing several strategic interventions, including:
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Further extension of the recapitalization deadline.
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A stakeholder review of capital requirements.
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Mergers and group acquisitions to help small operators meet thresholds.
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Registration of public limited liability companies to allow broader participation.
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Ongoing dialogue with the CBN and financial regulators for inclusive reform.
Gwadabe also disclosed that ABCON has applied for a CBN “No Objection” approval to float a public limited liability company that could absorb numerous smaller BDCs. However, he confirmed that the response from the CBN so far has been non-committal.
Background: Why the CBN Raised BDC Capital Requirements
The recapitalization policy is part of broader CBN efforts to sanitize and reposition the BDC segment as a critical player in Nigeria’s foreign exchange market. The new guidelines are backed by Section 56 of the Banks and Other Financial Institutions Act (BOFIA) 2020 and were issued following stakeholder consultations.
However, ABCON maintains that the BDC model is not capital-intensive, noting that operators neither take deposits nor offer loans, and thus should not be subjected to the same capital benchmarks as deposit-taking institutions.
What’s Next?
With today marking the expiration of the final deadline, all eyes are now on the CBN’s next move. A decision to enforce the new rules without adjustment could trigger the collapse of hundreds of small operators and destabilize informal FX channels, while an extension could offer breathing room to save jobs and stabilize the market.
