CBN Grants Six-Month Extension for Bureaux De Change Recapitalisation Amid Calls for Greater Industry Unity
The Central Bank of Nigeria (CBN) has granted a six-month extension to Nigeria’s bureaux de change (BDC) operators for meeting new recapitalisation requirements, pushing the deadline to June 3, 2025. The announcement came during a virtual general meeting of the Association of Bureaux De Change Operators of Nigeria (ABCON), with its president, AminuGwadabe, confirming the extension and urging industry players to capitalise on emerging opportunities.
The extension follows operational guidelines issued by the CBN in June, which required all existing BDCs to reapply for licencesin one of two categories, Tier 1 and Tier 2, each with distinct capital prerequisites. Under these guidelines, Tier 1 BDCs must have a capital base of N2 billion, while Tier 2 BDCs are required to maintain N500 million, with associated licence fees set at N5 million and N2 million, respectively. This recapitalisation effort is part of the CBN’s broader strategy to strengthen the industry’s regulatory framework and ensure stability in the foreign exchange market.
Gwadabe expressed appreciation for the extension, noting it as a testament to the CBN’s willingness to work collaboratively with BDC operators. “We are sending a message of unity, collaboration, and opportunities to ABCON members,” he said, emphasising that the extended timeline should be seen as a chance for operators to adapt and meet the CBN’s requirements. He called on members to embrace the benefits of the recapitalisation process, which he described as “immeasurable,” with significant potential to expand their operational capacities.
As part of the regulatory adjustments, BDCs are now permitted to acquire foreign currency from diverse sources, open foreign currency and naira accounts, and work with banks to issue prepaid debit cards. These measures, Gwadabe noted, are designed to enhance the operational flexibility of BDCs while strengthening their compliance with foreign exchange regulations.
In attendance were representatives from over 220 licensed BDCs, alongside ABCON Council members and stakeholders, reflecting broad industry engagement with the CBN’s initiatives. New BDC operators, however, have been granted an indefinite timeline to secure their licences, further reinforcing the CBN’s adaptive approach to sector regulation.
The recapitalisation extension arrives as Nigeria grapples with complex foreign exchange challenges, and industry insiders are hopeful that the extended timeline will allow BDCs to play a stronger role in stabilising the naira amidst volatile currency markets.
