By David Akinmola
The Central Bank of Nigeria’s (CBN) recapitalization deadline for Bureau De Change (BDC) operators officially expired on June 3, 2025, sparking urgent appeals from industry stakeholders to extend the deadline and prevent the potential loss of over three million jobs.
Under the revised guidelines issued in May 2024, BDCs were required to reapply for new licenses with significantly increased minimum capital thresholds: N2 billion for Tier 1 licenses and N500 million for Tier 2, a substantial rise from the previous N35 million requirement.
Despite a six-month extension granted in November 2024, compliance remains low. Dr. Aminu Gwadabe, President of the Association of Bureau De Change Operators of Nigeria (ABCON), revealed that over 95% of licensed operators failed to meet the new capital requirements, putting the livelihoods of millions at risk. ated, emphasizing that the closure of approximately 1,500 BDCs could lead to widespread unemployment and push operators into the informal market, undermining regulatory oversight and national security.
ABCON has proposed measures to mitigate the impact, including encouraging mergers and acquisitions among BDCs and establishing a public limited liability company to absorb smaller operators. The association has applied to the CBN for a “No Objection” letter to facilitate this initiative.
While the CBN maintains that the deadline is sacrosanct, stakeholders urge the apex bank to consider the broader economic implications and provide a more flexible framework to ensure compliance without triggering massive job losses.
As Nigeria navigates this critical juncture, the balance between regulatory reforms and economic stability remains a pressing concern for policymakers and industry players alike.
