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As the June 3, 2025, deadline for Bureau de Change (BDC) operators to meet the new capital threshold approaches, concerns are mounting about the potential consequences of the Central Bank of Nigeria’s (CBN) enforcement. The Association of Bureau De Change Operators of Nigeria (ABCON) has warned that approximately three million Nigerians risk losing their livelihoods if BDCs are forced to close shop due to the inability to meet the new capital requirements.
The CBN’s new operational guidelines for BDCs, effective June 3, 2024, require existing operators to reapply for licenses and meet minimum capital requirements of N2 billion for Tier 1 licenses and N500 million for Tier 2 licenses. However, ABCON President Aminu Gwadebe reveals that less than 10% of members have completed the capitalization process, citing the huge amounts required as a major challenge.
Gwadebe argues that the model being used for BDCs is essentially a bank model, which may not be suitable for the sector. He notes that while the model comes with benefits, the lack of assurance that the CBN would enforce them makes the sector unattractive to investors. The CBN’s failure to enforce previous circulars directing banks to sell to BDCs has also raised concerns about the effectiveness of the new guidelines.
As the deadline looms, it is essential for the CBN to reconsider the capital requirements and the model being used for BDCs. The sector plays a vital role in the foreign exchange market, and its collapse could have far-reaching consequences for the economy. The CBN should engage with stakeholders to find a solution that balances the need for a robust and stable financial system with the realities of the BDC sector.
At this point , it’s safe to argue that the fate of Nigeria’s BDC operators hangs in the balance, and the CBN’s enforcement could have significant consequences for the economy. It is crucial for the apex bank to take a pragmatic approach and work with stakeholders in the industry to find a solution that supports the growth and development of the sector. By doing so, the CBN can ensure that the BDC sector continues to play its role in the foreign exchange market while also protecting the livelihoods of millions of Nigerians.
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