The Association of Bureau De Change Operators of Nigeria (ABCON) has called on Bureau de Change (BDC) operators to consider mergers to meet the Central Bank of Nigeria’s (CBN) new capital requirements ahead of the June 2025 deadline. ABCON President, Aminu Gwadabe, praised the CBN for waiving the 2025 license renewal fee and urged members who may struggle to meet the new capital base to merge in order to remain operational.
The CBN’s updated guidelines, issued in May 2024, require Tier 1 BDCs to have a minimum capital base of N2 billion and Tier 2 BDCs to have N500 million. While the CBN argues that these measures will strengthen the sector and curb illegal forex trading, some BDC operators worry that the regulations will force smaller businesses out, consolidating control within a few larger entities.
Despite concerns, ABCON is actively promoting mergers as a viable solution, emphasizing that consolidation will help ensure compliance with the new financial regulations while preserving the stability of the foreign exchange market. However, some industry players continue to call for a review of the policy, fearing its potential negative impact on competition and market dynamics.
Source: LEADERSHIP