The Central Bank of Nigeria (CBN) is yet to communicate its next moves on the planned recapitalisation of the Bureau de Change (BDC) operators as the deadline of June 3, 2025, elapsed yesterday.

The CBN had introduced a new recapitalization regime for BDC operators, with two tiers: Tier One requiring a minimum capital of N2 billion and Tier Two requiring N500 million.

Under the new deal, Tier One BDCs will be licensed to operate nationwide, while Tier Two will be limited to a single state.

Though the naira has witnessed more than 100 per cent devaluation in the last two years, which requires more cash inflow to run a robust BDC, most operators claimed they are struggling to meet the new recapitalisation target.

The CBN’s stance has posed a series of challenges to the operators, from job losses to forced mergers and streamlining of operational expenses.

Indeed, the new guidelines include provisions for mandatory caution deposits, application fees, and license fees for both Tier One and Tier Two BDCs. Operators under the umbrella of the Association of Bureau De Change Operators of Nigeria (ABCON) have appealed to the CBN to reconsider its stance saying job loss and forced merger would be injurious to the economy.

ABCON President Dr Aminu Gwadabe said that hitting the BDCs with a sledgehammer now may lead to the sector’s collapse.

Gwadabe, in an interview with the News Agency of Nigeria (NAN) in Lagos after stakeholders met with CBN, said the deadline to operators remains sacrosanct.

With the extension to June 3rd, there are indications that only about 10 per cent of BDCa operating in the country have met the requirements.

ABCON has been engaging with the CBN and relevant financial regulators in its bid to halt the implementation of the recapitalisation exercise.

It was gathered that BDCs are presently exploring business models, including establishing public limited liability companies to enhance sector participation and inclusiveness.

“The CBN have acknowledged that our sub sector is a critical retail end sub-sector and that BDCs are an important and potent tool of CBN’s policy transmission mechanisms.

“Discussions are ongoing and with some give and take”, Gwadabe said.

The ABCON President added that the window for new licences was open for prospective investors with an agreement to accelerate the licencing process.

“Other matters are yet to be wrapped up with higher hopes of reaching a win-win situation,” he added.