The Association of Bureaux De Change of Nigeria has announced that the Central Bank of Nigeria has granted a six-month extension for BDC operators to complete their recapitalisation. This information was shared by ABCON President, Aminu Gwadebe, during a virtual general meeting held on Monday.
With this extension, the new deadline for recapitalisation is now set for June 3, 2025. In May, the CBN introduced new operational guidelines for BDCs, effective from June 3, which require all existing BDCs to reapply for a new licence based on their chosen categories (Tier 1 and Tier 2) and to meet the minimum capital requirements for their respective licence categories within six months of the guidelines' effective date.
According to these guidelines, BDCs holding Tier 1 licences must maintain a capital base of N2 billion, while those with Tier 2 licences are required to have N500 million, along with non-refundable licence fees of N5 million and N2 million, respectively.
Gwadebe noted that some BDCs have begun to comply with the CBN's recapitalisation directive. He further stated that the apex bank has approved an additional six-month period for all BDCs to recapitalise, moving the deadline from December 2024 to June 2025.
He expressed gratitude to the CBN for their support, stating, “The CBN is eager to collaborate with BDCs to facilitate a smooth recapitalisation process. We are conveying a message of unity, collaboration, and opportunity to ABCON members, encouraging them to meet the new capital requirements. We appreciate the CBN for accommodating our request for an extension.”
He clarified that this deadline is applicable to existing BDCs, while new operators seeking licences will have an indefinite timeframe to obtain theirs. “I encourage everyone to embrace the opportunities presented by recapitalisation, which are vast and significant,” Gwadabe remarked.
The head of ABCON stated that the CBN regulation authorizes BDCs to source foreign currency from various channels, engage in the sale of foreign exchange, and establish both foreign currency and naira accounts with commercial or non-interest banks.
Additionally, they are permitted to work alongside their banking partners to provide prepaid debit cards. The meeting was attended by more than 220 CBN-licensed BDCs, members of the ABCON Council, and other relevant stakeholders.