3 Million Jobs at Risk as 1,500 Nigerian Bureau De Change Operators Fail Recapitalisation Deadline
The Central Bank of Nigeria’s (CBN) June 3, 2025 deadline for Bureau De Change (BDC) operators to meet new recapitalisation requirements has passed, resulting in the expected closure of around 1,500 BDCs nationwide. This development threatens over three million jobs that are directly and indirectly linked to the sector, sparking widespread concern about the potential economic fallout. The move is part of the CBN’s broader strategy to tighten regulation and improve transparency in the foreign exchange market.
In May 2024, the CBN raised the minimum capital requirements drastically—from N35 million to N2 billion for Tier 1 licenses and N500 million for Tier 2. Despite a six-month extension granted in November 2024, less than 10% of BDC operators met the new standards. Analysts view the policy as a deliberate effort to shrink the number of BDC operators, paving the way for a leaner, digitally driven, and more financially stable sector.
The Association of Bureau De Change Operators of Nigeria (ABCON), led by Dr. Aminu Gwadabe, has called for a further extension and reassessment of the policy to avert mass job losses and economic instability. However, the CBN remains firm on its position, emphasizing the importance of reforming the sector to align with anti-money laundering standards and promote better governance. ABCON is exploring new business models such as public limited liability companies and agent-based partnerships to help smaller operators integrate with larger, compliant entities.
Experts suggest that the foreign exchange market is evolving, with increased digital transactions replacing cash-based dealings. This shift supports the CBN’s vision of fostering fewer but more compliant BDC operators. According to Ayokunle Olubunmi of Agusto & Co., the consolidation will likely lead to mergers and acquisitions, where smaller BDCs may either shut down or operate under the umbrellas of bigger players, enhancing market stability and transparency.
Despite concerns that excluded operators might resort to informal, unregulated currency trading, some analysts believe informal partnerships between licensed and unlicensed players could still support regulatory goals. ABCON, while warning about potential risks to transparency and security, remains committed to working with the CBN to ensure a compliant, resilient, and digitally enabled foreign exchange market that better serves Nigeria’s economic interests.
Source: Leadership