The Association of Bureau De Change Operators of Nigeria (ABCON) raised an alarm about the fate of licensed currency dealers, indicating that less than 5% of its members can meet the new capital requirements set by the Central Bank of Nigeria (CBN) by June 3, 2025.
This revelation has sparked a wave of fear and uncertainty for the BDCs as more than 95% of operators could shut down unless CBN extends the recapitalisation deadline.
Recall that in May 2024, the CBN had increased the minimum share capital of Bureau De Change Operators to N2 billion for Tier 1 license and N500 million for Tier 2 license as against the previous threshold of N35 million for a general license.
The new guidelines were introduced as part of a broader reform of the CBN, aimed at strengthening the forex market and rearranging the BDC sub sector to play a defined role in Nigeria’s forex ecosystem.
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Tier-1 BDCs are permitted to operate nationally, while Tier-2 BDCs will only be allowed to operate within one state of the Federation.
The capital raising initiative is part of the CBN’s reforms to reposition the BDC sector better to fulfill its role in Nigeria’s foreign exchange market.
The new guidelines were issued after consultations with stakeholders and in line with the powers vested in the CBN by Section 56 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
Meanwhile, the BDC operators had kicked against this increase in capital requirements from N35 million to N2 billion for Tier-1 BDCs, stating that it is against international best practices.
