About 1,500 Bureau De Change (BDC) operators across Nigeria are expected to shut down following the expiration of the Central Bank of Nigeria’s (CBN) June 3 recapitalisation deadline.
The development comes after the CBN raised the minimum capital requirements for BDC operators in May 2024—₦2 billion for Tier 1 licences and ₦500 million for Tier 2—up from the previous ₦35 million.
Despite a six-month extension granted in November 2024, only a small fraction of operators met the new requirements.
The mass closure is expected to affect over three million jobs directly and indirectly linked to the sector.
The Association of Bureau De Change Operators of Nigeria (ABCON), led by Dr. Aminu Gwadabe, has appealed to the CBN for another extension and a review of the policy to avoid large-scale job losses and disruption to the economy.
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However, the CBN has insisted that the deadline remains unchanged. It says the policy is aimed at sanitising the sector, enhancing transparency, and aligning with international standards on anti-money laundering and financial regulation.
Analysts say the recapitalisation may lead to industry consolidation, with fewer but stronger and digitally-compliant BDCs emerging.
ABCON is reportedly considering forming public limited liability companies to help smaller operators survive the new regulatory environment.
No further extension has been announced by the CBN as of the time of this report.