Nigeria’s BDC Operators in Turmoil as CBN Recapitalization Deadline Looms

As Nigeria’s foreign exchange market undergoes critical reforms, the Central Bank of Nigeria (CBN) has extended the deadline for Bureau De Change (BDC) operators to meet stringent new recapitalization requirements from December 3, 2024, to June 3, 2025.

However, despite the extension, nearly 95% of BDC operators are reportedly at risk of closure due to widespread non-compliance.
Under the new regulatory framework, Tier-1 BDCs are required to increase their minimum capital to ₦2 billion, while Tier-2 operators must meet a ₦500 million threshold. These measures are part of the CBN’s broader efforts to sanitize the sector, enhance transparency, and stabilize the foreign exchange market.

Speaking on the development, Aminu Gwadabe, President of the Association of Bureau De Change Operators of Nigeria (ABCON), described the response from operators as “lukewarm,” citing economic headwinds and limited access to funding as major challenges.

He added that many BDCs are now exploring mergers and acquisitions as a survival strategy.
“The recapitalization policy is necessary to reposition the BDC industry, but the timeline and financial requirements are posing a serious burden on smaller operators,” Gwadabe stated.
The CBN’s revised operational guidelines also introduce new licensing categories, stricter governance rules, and enhanced anti-money laundering protocols. According to the apex bank, the changes are designed to align Nigeria’s forex practices with international standards and boost investor confidence.

Industry experts warn that if the compliance rate does not improve significantly by mid-2025, the country could witness the mass exit of small and medium-sized BDCs—potentially leading to reduced competition and restricted access to retail foreign exchange services for everyday Nigerians. As the deadline looms, stakeholders are urging the CBN to consider phased implementation, provide access to credit facilities, or introduce regulatory flexibility to avert a potential collapse of the sector.