The Association of Bureau De Change Operators of Nigeria (ABCON) has confirmed that the deadline for the recapitalization of licensed Bureau De Change (BDC) operators in Nigeria remains Tuesday, June 3, 2025, as originally scheduled.
ABCON President Dr. Aminu Gwadabe made this declaration during an interview with the News Agency of Nigeria in Lagos following a stakeholder meeting with the Central Bank of Nigeria (CBN).
"The deadline for the existing BDCs for recapitalization by June 3rd, 2025, remains sacrosanct. Also, the minimum capital requirements of N2 billion for tier 1 and N500 million for tier 2 remain sacrosanct," Gwadabe stated.
Compliance Challenges
The confirmation comes amid concerns previously raised by ABCON that only 10 percent of its members had successfully met the recapitalization requirements as of Monday, despite the six-month grace period provided by the CBN.
In May 2024, the CBN introduced new operational guidelines for BDCs, which became effective on June 3, 2024. These guidelines mandated all existing BDC operators to reapply for new licenses under a two-tier system.
New Capital Requirements
Under the new framework, BDCs seeking Tier 1 licenses must have a capital base of N2 billion, while those applying for Tier 2 licenses require N500 million. Additionally, operators must pay non-refundable license fees of N5 million and N2 million for Tier 1 and Tier 2 respectively.
The recapitalization initiative is part of broader efforts by the CBN to strengthen Nigeria's foreign exchange market and ensure that BDC operators have sufficient capital to withstand market volatilities.
Market analysts suggest that the significant increase in capital requirements may lead to consolidation within the BDC sector, with smaller operators potentially merging or exiting the market entirely.
The outcome of this recapitalization exercise is expected to have substantial implications for Nigeria's foreign exchange market and the naira's performance against major international currencies in the coming months.
