*The Central Bank of Nigeria extends the deadline for Bureau De Change operators till December 31, 2025, to recapitalise their business for sustainability of the country鈥檚 Foreign Exchange market

Isola Moses | 绿帽献妻

Sequel to concerns from industry players and feedbacks from other stakeholders about the relatively low rate of compliance, the Central Bank of Nigeria (CBN) has extended the deadline for the Bureau De Change (BDC) recapitalisation exercise till December 31, 2025.

The CBN’s move marks the second extension since the Bankers’ Bank introduced the fresh recapitalisation framework February 2024.

绿帽献妻 reports the CBN initially, had fixed the recapitalisation deadline for December 3, 2024.

The Bank again, shifted the deadline for the exercise to June 3 this year in response to low compliance rates and feedback from stakeholders in the Nigerian economy.

However, it is noted that the new 18-month extension which the BDC operators now have would enable them to meet the updated capital requirements under the CBN revised regulatory framework.

According to CBN, the BDCs’ recapitalisation exercise is introduced as a two-tier licensing structure: Tier-1 BDCs must raise a minimum capital of N2 billion and are allowed to operate nationwide, including offering digital Forex services and inter-state transactions.

Whereas Tier-2 BDCs are required to raise N500 million and are restricted to operating within a single state.

Core objectives of BDCs’ recapitalisation exercise, by CBN

The Central Bank of Nigeria noted that the initiative is part of its holistic effort at restructuring and strengthening the retail Foreign Exchange (Forex) market.

The Nigerian banking sector regulator has explained the initiative aims to ensure that BDCs are financially stable, AML-compliant, and better positioned to support monetary policy goals.

The CBN disclosed this extension is part of a phased implementation strategy to de-risk the BDC segment, and align it with global best practices in terms of sustainability.

The banking regulator as well reaffirmed its commitment to curbing speculative activity, improving market transparency, and creating a more stable Foreign Exchange market in the West African country.

Meanwhile, internal communications and circulars within BDC networks have confirmed the new timeline of December 2025.

It was gathered Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria (ABCON) welcomed the CBN move.

Gwadabe reportedly described the extension their recapitalisation exercise as a 鈥渘ecessary intervention鈥� to prevent mass licence forfeitures in the country’s Forex market.

The President of ABCON also noted that compliance levels among the members yet have remained 鈥渁larmingly low”. The additional time will help operators to mobilise resources to meet the new standards, stated he.

Similarly, industry analysts have viewed the extension as a stabilising move, giving serious operators time to reorganise.

The analysts, however, cautioned that continued delays in enforcement could undermine investor confidence and derail long-term reform objectives in the Forex market.

All BDCs therefore, are expected to comply with the new deadline, or risk having their licences revoked, according to report.

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