The Central Bank of Nigeria (CBN) has granted an extension to Bureaux De Change (BDC) operators, giving them an additional six months to meet the new recapitalization requirements. The new deadline for recapitalization is now set for June 3, 2025.
This extension was announced by the President of the Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadebe, during a virtual general meeting with members on Monday. The initial deadline, which was set for December 2024, has now been pushed back to give operators more time to meet the capital requirements outlined in the CBN’s new operational guidelines issued in May.
Under these guidelines, BDCs are required to re-apply for new licenses based on two categories: Tier 1 and Tier 2. Tier 1 BDCs must meet a minimum capital requirement of N2 billion, while Tier 2 BDCs need N500 million. In addition, non-refundable license fees for these categories are set at N5 million and N2 million, respectively.
Gwadebe noted that some BDCs have already begun complying with the recapitalization directive, and the extension would allow more time for others to follow suit. He also emphasized that the CBN is committed to partnering with BDCs to ensure a smooth recapitalization process.
“We are sending a message of unity, collaboration, and opportunities to ABCON members to continue striving to meet the new capital requirements,” Gwadebe said. “We thank the CBN for listening and granting us this six-month extension.”
The deadline extension applies only to existing BDCs, while new operators seeking licenses are not subject to a fixed timeline. Gwadebe encouraged BDCs to view the recapitalization as an opportunity, emphasizing the potential benefits and opportunities it presents.
The ABCON president also highlighted that CBN regulations empower BDCs to acquire foreign currency from various sources, sell foreign exchange, and open both foreign currency and naira accounts with commercial or non-interest banks. BDCs are also permitted to collaborate with their bankers to issue prepaid debit cards.
The virtual meeting, which included over 220 CBN-licensed BDCs, ABCON Council members, and other stakeholders, underscored the importance of the recapitalization process in positioning the BDC sector for growth and sustainability.
