By 
The President of the Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, has urged the Central Bank of Nigeria (CBN) to reexamine the capital requirements imposed on Bureau De Change (BDC) operators. Gwadabe cautioned that the current regulatory framework may stifle innovation and disrupt effective compliance management, potentially undermining risk mitigation efforts across the sector.
Regulatory Compliance and Capital Challenges
Under the revised regulatory compliance guidelines implemented on June 3, Tier 1 BDCs are mandated to maintain a minimum capital base of N2 billion, while Tier 2 operators must hold N500 million. In addition to these thresholds, non-refundable licence fees of N5 million and N2 million are imposed respectively.
- Key Concern: Many operators face significant challenges in meeting these capital requirements, which can hinder smaller players and obstruct broader compliance analytics and regulatory reporting initiatives.
Gwadabe’s call for a review is rooted in the need to balance robust regulatory compliance with practical business operations, ensuring that the sector can adapt to evolving risk assessment and compliance change management standards.
Proposals for Self-Regulation and Technological Integration
Gwadabe also proposed granting ABCON self-regulatory status to enhance governance, risk, and compliance (GRC) within the industry. He believes that empowering the association to monitor its members will lead to:
- Improved Internal Controls: Enforcing regulatory policies more effectively and ensuring compliance with anti-money laundering (AML) and Know Your Customer (KYC) protocols.
- Enhanced Transparency: Enabling proactive regulatory reporting and compliance audits to sanction non-compliant operators promptly.
- Technology-Driven Oversight: Incorporating advanced regulatory technology solutions into existing IT platforms, thereby streamlining transactions and reinforcing compliance automation.
This tech-centric approach aligns with current RegTech innovations and emphasizes the role of compliance management systems in strengthening market oversight.
Impact of the Naira Rally
Gwadabe linked the recent naira rally to reforms spearheaded by the CBN, notably the implementation of the new Foreign Exchange Code. The local currency experienced one of its strongest performances in seven months, trading at:
- N1,474.78 per dollar in the official market.
- N1,610 per dollar in the parallel market.
He expressed optimism that addressing the challenges faced by BDC operators—through a more balanced regulatory compliance framework and enhanced risk assessment measures—would further stabilize the naira and boost market confidence.
CBN’s Licence Renewal Fee Waiver
In a related development, the CBN approved a waiver for the 2025 annual licence renewal fee for all existing BDC operators. This move, part of the transition to a new regulatory structure under the 2024 Regulatory and Supervisory Guidelines for Bureau De Change Operations, offers temporary financial relief. However, industry stakeholders continue to advocate for broader reforms to ensure the long-term sustainability of the sector, emphasizing the need for comprehensive regulatory compliance software and advisory solutions.
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