As the June 3, 2025, deadline set by the Central Bank of Nigeria (CBN) for Bureau De Change (BDC) recapitalization expires, the Nigerian foreign exchange sub-sector is grappling with rising tension and calls for urgent intervention. With over 3 million jobs now at risk, industry operators, led by the Association of Bureau De Change Operators of Nigeria (ABCON), are pleading for a further deadline extension and a revision of capital requirements to avert widespread economic fallout.
In May 2024, the CBN introduced stringent new capitalization thresholds, raising the minimum share capital for Tier 1 BDCs to ₦2 billion and Tier 2 operators to ₦500 million, a steep increase from the previous benchmark of ₦35 million. The apex bank justified this move as part of broader reforms to sanitize and modernize the FX market, citing its powers under Section 56 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
Following the announcement, BDCs were initially given until December 2024 to comply. However, due to low compliance levels, the CBN granted a six-month extension to June 3, 2025. Despite this grace period, less than 5% of licensed BDCs have reportedly met the new capital requirements, according to ABCON President Dr. Aminu Gwadabe.
“The requirements are simply unrealistic for the vast majority of operators, particularly SMEs. We’re now staring at a potential collapse of the industry,” Gwadabe stated, calling the recapitalization push “well-intentioned but poorly executed.”
ABCON warns that the policy, if rigidly enforced, could destabilize FX liquidity, especially in the parallel market where BDCs serve as a critical bridge for retail and small business transactions. The ripple effect could lead to heightened unemployment, eroding investor confidence and further pressuring Nigeria’s informal financial system.
To avert this scenario, ABCON has rolled out strategic measures:
• Advocacy for mergers and acquisitions to help small players pool resources.
• An application to the CBN for a “No Objection” to establish a public limited liability company to accommodate numerous members under one corporate umbrella.
• Ongoing engagement with regulators and lawmakers to reassess policy design.
With the recapitalization deadline now lapsed, the onus lies on the CBN to either enforce, revise, or extend the policy. Whatever the decision, the regulator must weigh its FX reform goals against the looming socio-economic impact.
