The Central Bank of Nigeria (CBN) has announced an extension of the recapitalisation deadline for Bureau De Change (BDC) operators, moving the date from December 3, 2024, to June 3, 2025.
Aminu Gwadabe, President of the Association of Bureaux De Change of Nigeria (ABCON), shared this update during an emergency virtual general meeting attended by over 220 CBN-licensed BDCs, ABCON council members, and other stakeholders. The extension was prompted by the low level of compliance among BDC operators with the new capital requirements.
Gwadabe expressed appreciation to the CBN for granting the additional six months and assured members that the bank is committed to facilitating a smooth recapitalisation process.
“The CBN is willing to partner with BDCs to ensure that the recapitalisation process is seamless. We are sending a message of unity, collaboration, and opportunity to ABCON members to continue striving to meet the new capital requirements. We thank the CBN for listening and providing this six-month extension,” Gwadabe stated.
The recapitalisation deadline applies to existing BDCs, while new operators seeking licenses will have an indefinite timeline to obtain them. Gwadabe encouraged members to leverage the opportunities presented by the recapitalisation process, which he described as “immeasurable.”
He also highlighted key provisions of the CBN regulations governing BDC operations, which allow BDCs to acquire foreign currency from various sources, sell foreign exchange, open both foreign currency and naira accounts with commercial or non-interest banks, and collaborate with banking partners to issue prepaid debit cards.
Additionally, Tier-2 BDCs are limited to operating within one state or the Federal Capital Territory (FCT) and may establish up to five branches with CBN approval, maintaining a minimum distance of one kilometre between each branch. However, Tier-2 BDCs are prohibited from appointing franchisees.
The new regulations also restrict certain entities—including commercial, merchant, non-interest, and payment service banks, financial holding companies, other financial institutions, International Money Transfer Operators, payment service providers, and staff of financial services regulatory agencies—from holding a BDC licence.