Bureau de Change (BDC) operators in Nigeria are optimistic about the Naira’s performance in 2025, citing ongoing foreign exchange (forex) market reforms as a key factor that could enhance currency stability and investor confidence.
While these operators acknowledge the benefits of regulatory measures aimed at strengthening the financial sector, they have raised concerns about the Central Bank of Nigeria’s (CBN) recapitalization policy, which mandates Tier-1 BDCs to increase their capital base to N2 billion and Tier-2 operators to N500 million. Many fear this requirement could force smaller operators out of business, potentially limiting access to forex in local markets.
Optimism for the Naira’s Stability
BDC operators believe that policy adjustments, increased investor confidence, structured diaspora remittances, and stronger oil outputs will contribute to a more stable Naira. Speaking on the issue, Aminu Gwadebe, President of the Association of Bureau De Change Operators of Nigeria (ABCON), emphasized that if the current economic momentum is sustained, the Naira could experience reduced volatility.
“With the right policies, investor confidence, and efficient remittance inflows, the Naira is positioned to strengthen in 2025. If regulators maintain this trajectory, we may finally witness greater stability,” Gwadebe stated.
Similarly, a BDC operator in Abuja, identified as Nasir, expressed optimism about the currency’s future but warned that certain CBN policies could create challenges for smaller operators.
Concerns Over Forex Access and Liquidity
In December 2024, the CBN introduced a $25,000 weekly forex purchase limit for BDC operators, a measure aimed at stabilizing exchange rates. However, implementation has faced challenges due to hesitation from commercial banks.
According to Gwadebe, many banks have been reluctant to facilitate the directive, affecting the efficiency of forex transactions. He called for an extension of the policy beyond its initial January 2025 deadline, urging the CBN to inject more liquidity into the retail forex market to prevent volatility.
“There needs to be a balance between controlling inflation and stabilizing the Naira. You cannot tackle one and leave the other unchecked,” he noted.
Impact of Recapitalization Policy on BDCs
The CBN’s recapitalization policy, introduced in May 2024, remains a contentious issue among BDC operators. Industry players argue that the high capital requirements could lead to market monopolization, shutting out smaller operators who serve local communities.
“The N2 billion requirement is a huge burden. We are encouraging mergers to help our members remain in business,” Gwadebe said.
Some operators fear that the forced exit of smaller players could reduce market competition, inadvertently creating instability in the forex market—the very outcome the policy aims to prevent.
Despite these concerns, the CBN has granted some relief measures, including waiving annual renewal fees for 2025 due to financial pressures on operators. Additionally, the deadline for capital compliance has been extended to June 3, 2025, giving operators more time to meet the requirements.
Call for Market Stability Measures
BDC operators continue to advocate for policies that promote liquidity and market confidence, emphasizing that stabilizing the forex market is crucial for economic growth.
A CBN official, speaking anonymously, advised affected operators to file official complaints regarding bank hesitations in implementing forex policies. While he did not confirm an extension of the $25,000 forex window, he suggested that a review could be considered if formal concerns are raised.
As Nigeria navigates forex reforms, BDC operators remain hopeful that sustained policy consistency, investor confidence, and adequate liquidity will pave the way for a stronger Naira in 2025.
