As the Central Bank of Nigeria’s (CBN) recapitalisation deadline elapsed yesterday, Tuesday, June 3, 2025, there are strong indications that about 95 percent of Bureau De Change firms will wind up.
The Association of Bureau De Change Operators of Nigeria (ABCON) has revealed that the majority of the licensed currency traders are faced with uncertainty, as only less than 5 percent of its members have so far been able to meet the new capital requirement set by the Central Bank of Nigeria (CBN), reports Daily Independent.
It was gathered that about 1,500 Bureau De Change (BDC) operators may have to shut down operations across Nigeria
There has been a lot of anxiety in the sector recently as the fate of most of these licensed Bureau De Change (BDC) operators hangs in the air, unless the June 3, 2025, recapitalisation deadline is further extended.
Despite pressure on the CBN to extend the deadline, ABCON, the umbrella association of BDC operators in the country said the June 3 recapitalisation deadline for Bureau De Change (BDC) operators remains sacrosanct.
ABCON President, Dr Aminu Gwadabe, said this in an interview in Lagos after a stakeholders meeting with CBN.
The CBN in May 2024 issued new operational guidelines for BDCs, effective June 3, 2024, directing all existing BDCs to reapply for new licences.
BDCs with Tier 1 licences were expected to have a capital base of N2 billion, while those with Tier 2 licences needed N500 million, with a non-refundable licence fee of N5 million and N2 million.
Both Tier 1 and Tier 2 BDCs were given six months to meet the minimum capital requirement for the licence category applied for.
The apex bank later extended the recapitalisation deadline by an additional six months while it continued engagements with the BDC operators to meet the new capital threshold by June 3.
ABCON, however, had raised concerns that less than q10 per cent of its members were able to reach the capital requirement as of Monday.
The association, thereafter, had a final stakeholder’s engagement with the apex bank in Lagos on Monday.
Speaking on the outcome of the meeting, Gwadabe thanked the apex bank for the move, adding that the BDCs’ recapitalisation deadline was sacrosanct.
“First, we want to thank the management of the Central Bank for their enhanced consultations with stakeholders.
“The CBN has acknowledged that our subsector is a critical retail end subsector and that BDCs are important and potent tools of the CBN’s policy transmission mechanisms.
“Discussions are ongoing, and with some give and take.
“The deadline for the existing BDCs for recapitalisation 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,” he said.
The ABCON President added that the window for new licences was open for prospective investors with an agreement to accelerate the licensing process.
“Other matters are yet to be wrapped up with higher hopes of reaching a win-win situation,” he said.
