The Central Bank of Nigeria (CBN) has extended the deadline for the recapitalization of Bureau De Change (BDC) operators by six months, moving the deadline from December 2024 to June 3, 2025.
This development was disclosed by the President of the Association of Bureaux De Change of Nigeria (ABCON), Aminu Gwadebe, during a virtual general meeting with members on Monday.
CBN’s Gesture of Collaboration
Gwadebe expressed gratitude to the CBN for the extension, stating that it provides BDC operators more time to comply with the new requirements.
“The CBN is willing to partner with BDCs to ensure that the recapitalization process is seamless,” Gwadebe said. “We are sending a message of unity, collaboration, and opportunities to ABCON members to continue to strive to meet the new capital requirements. We thank the CBN for listening and giving us a six-month extension.”
New Recapitalization Guidelines
The CBN had issued revised operational guidelines for BDCs in May, effective June 3, 2024. The directive required all BDC operators to reapply for new licenses and comply with capital requirements according to their preferred categories:
- Tier 1 BDCs: A minimum capital base of N2 billion, with a non-refundable license fee of N5 million.
- Tier 2 BDCs: A minimum capital base of N500 million, with a non-refundable license fee of N2 million.
The new rules aim to strengthen the sector, enhance transparency, and improve currency exchange stability.
Operators Begin Compliance
Gwadebe revealed that some BDCs have already begun complying with the guidelines, showing readiness to meet the new capital thresholds. He urged all members to take advantage of the extension and fulfill the requirements to secure their licenses.
Naira Performance in Forex Markets
The announcement comes amid continued volatility in Nigeria’s foreign exchange markets. On Monday, the naira plummeted to N1,675.52 at the official market and N1,755 in the black market, signaling the persistent pressures on the currency.
Economic Implications
The recapitalization policy is expected to enhance the stability and credibility of the BDC sector, which plays a crucial role in Nigeria’s foreign exchange ecosystem. However, analysts have raised concerns over the ability of smaller BDC operators to meet the steep capital requirements, potentially leading to a consolidation of the sector.
The six-month extension provides a window for BDC operators to strategize and comply, while the CBN continues to seek stability in Nigeria’s forex market amidst rising exchange rate disparities.
