Victor EzejaLast-minute efforts by the Bureau De Change (BDC) operators to seek further extension of the deadline for recapitalisation appear to have failed as the Central Bank of Nigeria (CBN) insisted that June 3 remains sacrosanct.
The Association of Bureau De Change Operators of Nigeria (ABCON) had appealed to the apex bank to consider extending the deadline beyond 3 June to enable operators rally round and meet the new capital threshold.
Join our WhatsApp ChannelIt said over 90 per cent of the operators were unable to meet the revised licence requirements before the deadline.
In a media interview in Lagos on Tuesday, ABCON President, Dr Aminu Gwadabe, who had a stakeholder meeting with the CBN confirmed that the 3 June recapitalisation deadline remains.
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It would be recalled that the CBN had in May 2024 introduced revised operational guidelines for BDCs, effective June 3 of the same year.
The financial system regulator directed all existing BDCs to reapply for operational licences which requires having new capital thresholds. The CBN revised guideline stipulated that BDCs with Tier 1 licences were expected to have a capital base of ₦2 billion, while those with Tier 2 licences must have minimum of ₦500 million. Each operator is also required to pay a non-refundable licence fee of ₦5 million and ₦2 million for Tier 1 and Tier 2, respectively.
After the initial six months, CBN extended the deadline to 3 June 2025.
According to the News Agency of Nigeria, the ABCON president had a final stakeholders’ engagement with the apex bank in Lagos on Monday.
Speaking on the outcome of the meeting, ABCON president said the June 3 deadline “remains sacrosanct.”
He thanked the CBN for its robust consultations with stakeholders in the sector.
“The CBN has acknowledged that our sub-sector is a critical retail end sub-sector and that BDCs are an important and potent tool of CBN’s policy transmission mechanisms.
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“Discussions are ongoing and with some give and take,” Gwadabe stated.
“The deadline for the existing BDCs for recapitalisation by June 3rd, 2025, remains sacrosanct. Also, the minimum capital requirements of N2 billion for tier 1 and N500 million for tier 2 remain sacrosanct,” he added.
He mentioned that new licence applications are still being processed and that prospective investors have an agreement in place to expedite the process.
He went on to say that there are still other topics being discussed with “higher hopes of reaching a win-win situation.”
According to him, there are still other issues being discussed with “higher hopes of reaching a win-win situation.”
The recapitalization of BDCs was among several measures taken by the CBN in 2024 to clean up and fortify Nigeria’s foreign currency market.
With this development, BDCs that failed to meet the new capital requirement may opt to merge with others.
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In an earlier interview, the ABCON president also hinted that some operators are considering mergers and acquisitions in a bid to meet the requirements.
Meanwhile, analysts and industry stakeholders have warned that there may be dollar scarcity, creating a wider gap between parallel or black market and official market if the deadline was not extended.
Analysts at Commercio Partners raised concerns that if the CBN does not extend the recapitalisation deadline for BDCs beyond June 3, it might cause FX supply disruption, “particularly for SMEs and individuals relying on retail access, likely leading to increased volatility and potential widening of the parallel market premium.”
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
