Ahead of the June 2025 deadline for Bureau de Change (BDCs) to meet up with a new capital base, President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadebe, has urged operators to embrace mergers to meet the recapitalisation deadline.
Gwadabe, whilst commending the Central Bank of Nigeria (CBN) for waiving the license renewal fee for 2025, urged the members of the association who cannot raise the fund to meet the new capital base to merge.
In May last year, the CBN had issued new operational guidelines for BDCs directing all existing BDCs to re-apply for a new license according to their preferred categories (Tier 1 and Tier 2 BDCs) and meet the minimum capital requirement of the license category applied by June 30, 2025.
According to the guidelines, BDCs with Tier 1 licenses are expected to have a capital base of N2 billion while Tier 2 licenses must have N500 million with non-refundable license fees of N5 million and N2 million respectively.
In a message sent to Leadership, Gwadabe said “on behalf of the entire members of the Central Bank licensed Bureaux de change operators I want to say a big thank you to the management of the Central Bank for the annual license renewal amnesty extended to our members.”
According to him the waiver underscores the apex bank’s management commitment to ensuring the implementation of the New CBN regulation 2024 on BDCs new financial capitalization Requirement. “I therefore urge my members to adopt and embrace the Association’s propagation of Mergers to meet up the extended deadline of the recapitalisation process before the extended deadline of June, 2025.”
Meanwhile some BDC operators believe the 2024 CBN Regulations for BDC is likely to force smaller operators out of business and leave the market in the hands of a few as they called for a review of the policy.
Although the CBN, when it released the guidelines last year May, had said it was aimed at strengthening the financial health of the sector, curbing illegal forex trading, and aligning the industry with international best practices, some BDC operators say it could negatively impact their operations and the overall stability of the forex market.
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