The Central Bank of Nigeria (CBN) has extended the deadline for Bureaux De Change (BDC) operators to meet new recapitalization requirements by six months, pushing the date to June 3, 2025. This announcement was made by the President of the Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, during a virtual general meeting with members on Monday.
Recapitalization Guidelines
The recapitalization directive stems from the CBN’s revised operational guidelines for BDCs issued in May 2024. These guidelines, which became effective on June 3, 2024, require existing BDCs to reapply for new licenses under two categories:
- Tier 1 BDCs: Must have a minimum capital base of ₦2 billion and pay a non-refundable licensing fee of ₦5 million.
- Tier 2 BDCs: Are required to maintain a capital base of ₦500 million with a non-refundable licensing fee of ₦2 million.
The original six-month deadline for meeting these requirements was set for December 2024. However, after consultation and feedback from stakeholders, the CBN granted the extension to facilitate a smoother transition for operators.
ABCON’s Response
Speaking during the meeting, Gwadabe expressed gratitude to the CBN for the extension, emphasizing the importance of unity and collaboration among BDC operators.
“The CBN is willing to partner with BDCs to ensure that the recapitalization process is seamless,” Gwadabe said. “We thank the CBN for listening and providing this extension. This is an opportunity for us to reposition the sector and unlock new potentials.”
Gwadabe also highlighted that some operators have already started the recapitalization process. Existing BDCs are encouraged to meet the new requirements within the extended timeline, while new entrants have an indefinite period to obtain licenses.
Benefits of Recapitalization
ABCON underscored the opportunities that the recapitalization exercise offers to the sector. Under the revised guidelines, BDCs are empowered to:
- Acquire foreign currency from multiple sources.
- Sell foreign exchange in line with regulatory limits.
- Open both foreign currency and naira accounts with commercial or non-interest banks.
- Collaborate with banks to issue prepaid debit cards.
These provisions aim to enhance the capacity of BDCs to serve Nigeria’s foreign exchange market and support the economy.
Stakeholder Engagement
The virtual meeting witnessed active participation from over 220 licensed BDC operators, members of the ABCON Council, and other stakeholders. Discussions centered on strategies to achieve compliance and strengthen the sector’s role in the country’s financial system.
Looking Ahead
The extension provides much-needed relief to operators, allowing them additional time to meet the stringent requirements. ABCON continues to advocate for collaboration and innovation within the sector, highlighting the potential for recapitalization to strengthen the BDC industry and improve foreign exchange accessibility for Nigerians.
