By 
Bureau De Change (BDC) operators in Nigeria have yet to comply with the new operational guidelines issued by the Central Bank of Nigeria (CBN) three weeks ago.
The President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadebe, stated that the delay in compliance is due to a lack of clarity regarding the new guidelines from the CBN.
Gwadebe explained that BDC operators had sought clarification from the CBN but had not received any response. He emphasized the confusion among operators, saying, “We don’t have clarity. For the existing BDCs, what we expect the CBN to do is tell them to come and recapitalise, but what is happening is that they are being told to re-apply. We need to know if the existing licenses were withdrawn or revoked. Reapplying feels like an entirely new process, which contradicts any recapitalisation plan.”
The new CBN guidelines, effective June 3, direct all existing BDCs to re-apply for a new license according to their preferred category (Tier 1 or Tier 2) and meet the minimum capital requirements within six months. Tier 1 BDCs must have a capital base of N2 billion, while Tier 2 BDCs must have N500 million, with non-refundable license fees of N5 million and N2 million, respectively.
Gwadebe also noted that the CBN had suspended supplying foreign currency to BDCs since March and seemed to be moving towards a complete liberalisation of the foreign currency market, which would eliminate the need for its intervention. He remarked, “The BDC window has been suspended by the CBN since around March. Our business model relied on funding from the CBN, and with the new financial requirements, it’s unattainable for most of our members.”
He expressed skepticism about the feasibility of meeting the new capital requirements and the profitability of the business under these conditions. Gwadebe also raised concerns about policy inconsistency, which he argued undermines confidence in the stability of future regulations.
Gwadebe further complained about difficulties in obtaining feedback from the CBN, saying, “There is a need for clarity, and there appears to be a lot of reorganisation taking place there. Communication is broken, and getting clarification is hard. The CBN is mute or muted as far as I’m concerned.”
Attempts to contact the acting Director of Corporate Communications at the CBN, Sidi Ali, were unsuccessful as calls and messages went unanswered.
An anonymous source familiar with the situation indicated that it is still early for full compliance but asserted that BDC operators would eventually have to adhere to the guidelines. The source also mentioned that BDCs would be officially notified if the CBN decided to stop selling foreign exchange to them.
Since resuming the sale of forex to BDCs on February 27, the CBN has conducted about four transactions with eligible operators. However, the ongoing uncertainties and the new requirements pose significant challenges for BDC operators in Nigeria.
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