CBN’s Recapitalization Deadline Expires: BDC Operators Urge Extension to Save 3 Million Jobs
The Central Bank of Nigeria’s (CBN) deadline for Bureau De Change (BDC) operators to meet new recapitalization requirements expired today, sparking urgent calls from industry players for a further extension. The Association of Bureau De Change Operators of Nigeria (ABCON), led by Dr. Aminu Gwadabe, is pressing the CBN to reconsider the financial thresholds and extend the timeline, warning that failure to do so could lead to the loss of three million jobs and significant economic instability.
In May 2024, the CBN significantly raised the minimum capital requirement for BDCs, mandating N2 billion for Tier 1 and N500 million for Tier 2 licenses. This marked a dramatic increase from the previous N35 million requirement. In response to industry resistance and low compliance, the CBN had granted a six-month extension in November 2024, pushing the final deadline to June 3, 2025.
Despite the additional time, only about 5% of BDCs have been able to meet the new benchmarks, causing widespread concern. Dr. Gwadabe emphasized the need for another extension and a revision of the recapitalization criteria, noting that the stringent demands have overwhelmed many operators and stoked anxiety across the sector.
ABCON has launched several initiatives to cushion the impact of the policy, including ongoing dialogue with regulators, lobbying for policy changes, and encouraging mergers and acquisitions among smaller operators. The association is also exploring alternative structures, such as forming a public limited company, to accommodate more members under a shared license structure.
Ultimately, the fate of thousands of BDC operators now hinges on whether the CBN will respond to these appeals. The recapitalization effort, while part of broader reforms aimed at strengthening Nigeria’s foreign exchange market, has ignited a tense standoff between regulatory goals and the survival of thousands of small-scale businesses in the financial sector.
Source: Nairametric