The Central Bank of Nigeria’s (CBN) recapitalization deadline for Bureau De Change (BDC) operators expired today, leaving the sector in turmoil as less than 5% of licensed operators have met the stringent new capital requirements.
The Association of Bureau De Change Operators of Nigeria (ABCON), led by President Dr. Aminu Gwadabe, has issued an urgent plea for a deadline extension and a review of licensing conditions to avert severe economic fallout, including the potential loss of three million jobs.
In May 2024, the CBN introduced sweeping reforms, raising the minimum share capital for BDC operators to N2 billion for Tier 1 licenses and N500 million for Tier 2 licenses, a sharp increase from the previous N35 million general license threshold.
The policy aimed to strengthen the sector’s financial stability and align it with global standards. However, the steep requirements have proven unattainable for most operators, prompting the CBN to grant a six-month extension in November 2024, shifting the deadline to June 3, 2025.
Despite the additional time, compliance remains dismally low. Dr. Gwadabe revealed that the vast majority of Nigeria’s licensed currency traders—critical to the nation’s informal foreign exchange market—have failed to meet the new benchmarks. “The sector is gripped by anxiety and uncertainty,” he said. “Without further intervention, we risk catastrophic job losses and economic disruption.”
ABCON estimates that over three million jobs, both direct and indirect, are at stake, as many BDC operators face potential license revocation. The ripple effects could destabilize Nigeria’s foreign exchange ecosystem, which relies heavily on BDCs to serve small-scale businesses and individuals.
To address the crisis, ABCON has intensified its engagement with the CBN, advocating for a further extension and a reassessment of the capital thresholds. The association is also pushing innovative solutions, including mergers and investor acquisitions to help smaller operators pool resources.
Gwadabe highlighted a proposal to form a public limited liability company to absorb struggling operators, though the CBN has yet to approve this plan, issuing only a “holding response.”
We are exploring every avenue to preserve jobs and stabilize the sector, Gwadabe said. “Mergers could allow groups of operators to consolidate into single entities capable of meeting the capital requirements, but we need the CBN’s support to move forward.”
The expiration of the deadline has heightened tensions, with stakeholders warning of widespread closures if no relief is granted. ABCON’s lobbying efforts continue, emphasizing the need for ongoing collaboration with regulators to ease the pressure on operators and maintain sector inclusivity.
WHAT YOU SHOULD KNOW
The Central Bank of Nigeria’s (CBN) recapitalization deadline for Bureau De Change (BDC) operators expired on June 3, 2025, with less than 5% of operators meeting the new capital requirements of N2 billion for Tier 1 and N500 million for Tier 2 licenses.
This threatens over three million jobs and could disrupt Nigeria’s informal foreign exchange market. Key factors to know: the steep capital increase from N35 million has overwhelmed most operators, prompting ABCON to urge the CBN for a deadline extension and policy review.
Efforts to mitigate the crisis include proposed mergers and a public limited liability company, but the CBN’s response remains pending. Without intervention, widespread closures loom, risking economic instability.
