Many Bureau De Change (BDC) operators are finding it challenging to meet the Central Bank of Nigeria’s (CBN) new N2 billion recapitalisation requirement, even after a six-month extension granted in December 2024.
The President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadebe, revealed that compliance remains low, with many members citing difficulties in meeting the financial demands. “Compliance is still very lukewarm,” Gwadebe said, adding that while mergers are being explored as a strategy, most operators are struggling to meet the threshold.
The CBN had announced fresh guidelines for BDC operations in May 2024, creating two licensing categories. Tier 1 BDCs are required to have a minimum capital base of N2 billion, while Tier 2 BDCs must maintain N500 million. Both tiers also include non-refundable application and licensing fees.
With the new deadline set for June 3, 2025, ABCON has continued discussions with the CBN to explore the possibility of easing the financial requirements. However, the central bank has emphasized that the recapitalisation benchmark aligns with industry standards and is not subject to revision.
The naira’s outlook for 2025 remains tied to supply-side factors. Gwadebe noted that improved liquidity through CBN interventions and the implementation of autonomous foreign exchange transactions could help stabilize the currency.
Additionally, the CBN recently introduced two new account types—Non-Resident Nigerian Ordinary Account (NRNOA) and Non-Resident Nigerian Investment Account (NRNIA)—to encourage diaspora remittances. These accounts aim to enhance non-resident Nigerians’ ability to invest in local assets and participate in economic development initiatives.
Despite the challenges, ABCON is working to support its members in meeting the recapitalisation requirements while navigating the evolving foreign exchange landscape.
