The Central Bank of Nigeria (CBN) has extended the deadline for Bureau De Change (BDC) operators to meet new capital requirements from December 3, 2024, to June 3, 2025. This six-month extension comes in response to low compliance among BDC operators with the CBN’s recapitalisation guidelines.
Aminu Gwadabe, President of the Association of Bureaux De Change of Nigeria (ABCON), announced the extension during a virtual emergency meeting with over 220 CBN-licensed BDCs, ABCON council members, and other stakeholders. The CBN’s decision aims to ensure a smoother transition for BDCs in meeting the new financial thresholds set by the central bank.
Gwadabe expressed gratitude for the extension, highlighting that the CBN is committed to assisting BDCs in navigating the recapitalisation process. He encouraged members to seize the opportunities the reform presents, calling the changes “immeasurable” for the future growth of the sector.
The recapitalisation requirements mandate that Tier-1 BDCs raise a minimum capital of N2 billion, while Tier-2 BDCs must secure N500 million. Tier-1 BDCs, which will be allowed to operate nationwide, must maintain a minimum distance of one kilometre between branches and franchisees, while Tier-2 BDCs are restricted to operating within one state and cannot appoint franchisees.
These guidelines are part of broader reforms aimed at strengthening Nigeria’s foreign exchange market. The CBN’s updated rules, issued under the Banks and Other Financial Institutions Act (BOFIA) 2020, also include new licensing requirements, corporate governance, anti-money laundering, and counter-financing of terrorism provisions.
In addition to the capital raise, the revised regulations outline permissible activities for BDCs, including the ability to acquire and sell foreign currency, open foreign currency and naira accounts with banks, and issue prepaid debit cards in collaboration with banking partners.
The extension comes as part of the CBN’s ongoing efforts to reposition the BDC sector, ensuring greater compliance and enhanced operational capacity for financial institutions involved in currency exchange.