ABCON Reaffirms CBN’s Recapitalisation Deadline After Key Meeting.
The Association of Bureau De Change Operators of Nigeria (ABCON) has confirmed that the Central Bank of Nigeria’s (CBN) deadline for the recapitalisation of Bureau De Change (BDC) operators remains firmly in place. The announcement, made on Tuesday, 3 June 2025, follows a crucial stakeholders’ meeting with the CBN in Lagos, where discussions centred on the future of the BDC sector amid ongoing reforms.
Dr Aminu Gwadabe, ABCON President, clarified the position in an interview with the News Agency of Nigeria (NAN) shortly after the meeting. “The deadline for the existing BDCs for recapitalisation by June 3rd, 2025 remains sacrosanct. Also, the minimum capital requirements of ₦2 billion for Tier 1 and ₦500 million for Tier 2 remain sacrosanct,” he stated, dispelling earlier speculation of a potential extension.
The CBN had initially set a six-month window for BDC operators to meet the revised capital thresholds, a policy introduced in 2024 under the Banks and Other Financial Institutions Act (BOFIA) 2020 to strengthen Nigeria’s foreign exchange market. A subsequent six-month extension pushed the deadline to 3 June 2025, yet only about 10% of ABCON’s members had complied by Monday, 2 June, according to Dr Gwadabe.
Despite earlier appeals from ABCON for the CBN to reconsider the timeline and licence requirements to avert job losses and economic disruption, the association now acknowledges the regulator’s firm stance. Dr Gwadabe expressed gratitude for the CBN’s engagement, noting that ABCON remains committed to supporting the apex bank’s objectives of enhancing governance, compliance, and stability in the forex market.
The recapitalisation drive, which mandates ₦2 billion for Tier 1 licences and ₦500 million for Tier 2, aims to bolster the financial resilience of BDCs and align the sector with anti-money laundering and counter-terrorism financing standards. Dr Gwadabe highlighted that the window for new licence applications remains open, with an agreement to fast-track the process for prospective investors.
ABCON has initiated strategic measures to mitigate challenges, including encouraging mergers and acquisitions among operators and exploring the formation of public limited liability companies to absorb smaller players. These efforts, coupled with ongoing dialogue with the CBN and other regulators, reflect the association’s resolve to navigate the reforms while minimising economic fallout.
