About 1,500 Bureau De Change (BDC) operators may have to shut down operations across Nigeria as the Central Bank of Nigeria’s (CBN) recapitalisation deadline elapsed on Tuesday, June 3, 2025.
This has sparked fears of job losses in the sector and potential underground market activity.
President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe told LEADERSHIP that over 95 per cent of licensed operators failed to meet the new minimum capital requirements of N500 million for Tier 2 and N2 billion for Tier 1, set by the CBN, leading to an industry-wide shakeout.
Gwadabe, while acknowledging the CBN’s willingness to engage stakeholders, expressed deep concern over the impact of the reform, noting that, the one-year timeline made compliance nearly impossible for the majority of operators.
He noted that, “Not more than five per cent have met the financial requirements and leaving over 95 per cent struggling with extinction. With the current slow pace of compliance, it is only an extension for the eligible BDC’s that will enable them to participate in the new reforms or face revocation.
“The 2024 CBN new guidelines on recapitalisation of BDCs in Nigeria is one of the reforms that intends to upgrade capacity, corporate governance, and efficient reporting while aligning with AML/CFT standards. It is indeed a journey, not a destination.”
Gwadabe warned that, the closure of 1,500 BDCs could put more than three million Nigerians at risk of losing their livelihoods, either directly or through ancillary services.
“The elephant in the room is job losses. Millions of Nigerians will lose their means of livelihood directly or indirectly within the sub-sector,” he said.
Gwadabe also expressed concern that many BDC operators, in a bid to survive, could be pushed into the informal currency market, beyond the oversight of regulators.
“It is our concern that unable BDCs might be pushed to operate outside the regulated space, where players enjoy lesser regulatory burdens. This threatens both transparency and national security,” he cautioned.
He added that reporting and data visibility would also be severely impacted, as BDCs that do not meet regulatory thresholds are no longer obliged to submit transaction reports to regulatory and security agencies.
He emphasised that the CBN’s goal of a well-regulated, compliant foreign exchange market would be better served by prioritising operators’ ability to meet reporting obligations, rather than capital thresholds alone.
“We urge them to prioritise reporting obligations rather than financial monetary considerations,” he said.
Gwadabe added that ABCON remains committed to the regulator’s objectives and will continue to work with the apex bank on possible paths forward.
“We pledge our commitment to being an enviable compliance-driven entity. The BDCs remain the most potent and effective tool of CBN’s policy transmission mechanisms,” he stated.
He added that ABCON has been encouraging consolidation within the industry, adding that proposals are on the table for mergers, acquisitions, and even the establishment of a public limited liability company that could absorb multiple smaller operators.
Gwadabe disclosed that the association had already applied to the CBN for a “No Objection” letter to establish such a company. “We received a holding response from the CBN, and we remain hopeful that a positive outcome will follow,’” he said.
Despite the closure of hundreds of existing operators, Gwadabe noted that the window for new licensing remains open.
He encouraged investors and compliant operators to take advantage of the opportunity. The licensing window for new investors is still open for our members and the public,” he said.
