Nigerian BDC Operators Call for Capital Requirement Review Amid Naira Rally
The President of the Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, has called on the Central Bank of Nigeria (CBN) to reconsider the capital requirements imposed on Bureau De Change (BDC) operators, warning that the stringent conditions could stifle the sector.
In a statement released on Sunday, Gwadabe highlighted the challenges BDC operators face in meeting the new regulatory framework, which came into effect on June 3. Under the revised guidelines, Tier 1 BDCs must maintain a minimum capital base of N2 billion, while Tier 2 operators are required to hold N500 million, alongside non-refundable licence fees of N5 million and N2 million, respectively.
“Meeting the capital base remains a significant challenge for the majority of operators,” Gwadabe said, urging the CBN to reconsider the thresholds to prevent smaller players from being forced out of the market.
Calls for Self-Regulation and Tech-Driven Oversight
Beyond the capital review, Gwadabe also advocated for ABCON to be granted self-regulatory status, a move he believes would enhance compliance and governance within the industry. He argued that empowering the association to oversee its members would improve transparency, allowing it to sanction non-compliant operators while enforcing regulatory guidelines more effectively.
Additionally, he called for greater technological integration in forex trading, proposing that operators’ IT platforms be incorporated into the regulatory framework to strengthen market oversight and streamline transactions.
Naira Gains and Market Confidence
Gwadabe linked the recent rally of the naira to ongoing reforms by the CBN, particularly the newly implemented Foreign Exchange Code, which has bolstered investor confidence.
The local currency saw one of its strongest positions in seven months, trading at N1,474.78 per dollar in the official market and N1,610 per dollar in the parallel market over the weekend. Gwadabe expressed optimism that addressing BDC operators’ concerns would further stabilise the naira and enhance liquidity.
He urged all forex market participants to align with the FX Code guidelines, stressing the importance of risk management frameworks and compliance measures, particularly in relation to anti-money laundering and counter-financing of terrorism (AML/CFT) protocols.
CBN Grants Licence Renewal Waiver
In a separate development, the CBN has approved a waiver of the 2025 annual licence renewal fee for all existing BDC operators. The decision aligns with the ongoing transition to a new regulatory structure, aimed at reshaping the foreign exchange market under the 2024 Regulatory and Supervisory Guidelines for Bureau De Change Operations.
While the waiver offers temporary financial relief, industry players continue to push for broader reforms that will ensure the long-term sustainability of the sector.
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