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The Central Bank of Nigeria (CBN) has extended the deadline for bureaux de change (BDC) operators to meet new recapitalisation requirements by six months, shifting the date to June 3, 2025. This decision, announced during a virtual general meeting of the Association of Bureaux De Change Operators of Nigeria (ABCON), was confirmed by ABCON President Aminu Gwadabe, who highlighted the need for industry stakeholders to leverage emerging opportunities.
The extension comes as part of the CBN’s effort to strengthen the regulatory framework of the BDC sector and stabilise Nigeria’s foreign exchange market. The recapitalisation guidelines issued in June 2024 require BDC operators to reapply for licenses in one of two categories:
- Tier 1 BDCs: Minimum capital base of ₦2 billion with a license fee of ₦5 million.
- Tier 2 BDCs: Minimum capital base of ₦500 million with a license fee of ₦2 million.
CBN’s Collaborative Approach
ABCON President Gwadabe praised the CBN for its collaborative stance, noting the extension as an opportunity for operators to align with regulatory expectations. “The extended timeline allows us to reposition and adapt, ensuring the sustainability and growth of the industry,” he stated. He urged BDC operators to embrace the recapitalisation process, describing its benefits as transformative for operational capacity and market competitiveness.
Enhanced Operational Flexibility
As part of the new regulatory framework, BDCs now have greater operational latitude. They can:
- Source foreign exchange from multiple channels.
- Operate foreign currency and naira accounts.
- Partner with banks to issue prepaid debit cards.
These measures aim to enhance the functionality of BDCs while ensuring compliance with foreign exchange regulations.
Broad Industry Engagement
The meeting saw participation from over 220 licensed BDCs, alongside ABCON Council members and key stakeholders, reflecting strong industry engagement. Notably, new entrants into the BDC sector have been granted an indefinite timeline to secure their licenses, underscoring the CBN’s adaptive approach to fostering growth and inclusivity within the sector.
Addressing Foreign Exchange Challenges
This extension comes as Nigeria continues to face complex foreign exchange challenges. Industry experts express optimism that the extended timeline will enable BDCs to strengthen their role in stabilising the naira amidst volatile currency markets.
The recapitalisation initiative and related regulatory adjustments mark a significant step forward in ensuring the resilience and integrity of Nigeria’s BDC sector.
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