The Central Bank of Nigeria (CBN) has extended the recapitalization deadline for Bureau De Change (BDC) operators by six months, moving it from December 3, 2024, to June 3, 2025. This decision, announced by Alhaji Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria (ABCON), followed low compliance levels among operators in meeting the new capital requirements. The extension aims to provide BDCs more time to raise the needed funds and align with the CBN’s regulatory reforms.
During an emergency meeting with over 220 CBN-licensed BDCs and stakeholders, Gwadabe highlighted the collaboration between ABCON and the apex bank to ensure a seamless recapitalization process. The new guidelines require Tier-1 BDCs to raise a minimum capital of ₦2 billion to operate nationally and Tier-2 BDCs to raise ₦500 million to operate within a single state. Gwadabe urged operators to see the recapitalization process as an opportunity for growth while commending the CBN for its supportive stance.
The reforms are part of efforts to strengthen the foreign exchange market and enhance the operational framework of BDCs. The guidelines also introduce distinct licensing requirements for Tier-1 and Tier-2 operators, restricting Tier-2 BDCs to operate within a single state and banning banks and certain financial service staff from owning BDC licenses. These measures, implemented under the Banks and Other Financial Institutions Act 2020, aim to improve governance, anti-money laundering compliance, and transparency within the sector.
