There are indications that about 3,600 bureau de change operators might lose their registration as the deadline for recapitalisation given by the Central Bank of Nigeria (CBN) elapsed yesterday, Daily Trust can report.

This is just as the Association of Bureau De Change Operators of Nigeria (ABCON) confirmed that the CBN’s June 3 recapitalisation deadline for Bureau De Change (BDC) operators remains sacrosanct.

This means that over 3,600 operators might lose their registration, going by the revelation by the ABCON President, Dr Aminu Gwadabe, that only about 10 per cent of the 4,000 registered members have complied.

Gwadabe spoke in an interview with the News Agency of Nigeria (NAN) in Lagos after a stakeholders meeting with CBN.

It would be recalled that the CBN in May 2024 issued new operational guidelines for BDCs, effective June 3, 2024, directing all existing BDCs to reapply for new licences.

BDCs with Tier 1 licence were expected to have a capital base of N2 billion while those with Tier 2 licence needed N500 million, with non-refundable licence fees of N5 million and N2 million respectively.

Both Tier 1 and Tier 2 BDCs were given six months to meet the minimum capital requirement for the licence category applied for.

The apex bank later extended the recapitalisation deadline by an additional six months while it continued engagements with the BDC operators to meet the new capital threshold by June 3.

ABCON, however, had raised concerns that only about 10 per cent of its members were able to reach the capital requirement as of Monday.

The association had a final stakeholder’s engagement with the apex bank in Lagos on Monday.

Speaking on the outcome of the meeting with NAN, Gwadabe thanked the apex bank for the move, adding that the BDCs’ recapitalisation deadline was sacrosanct.

He said, “First, we want to thank the management of the central bank for their enhanced consultations with stakeholders.

“The CBN had 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.

“The deadline for the existing BDCs for recapitalisation by June 3rd, 2025 remains sacrosanct. Also, the minimum capital requirements of N2 billion for tier 1 and N500 million for tier 2 remain sacrosanct,” he added.

The ABCON president also said 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 said.

Job losses loom

ABCON however raised concerns over impending massive job losses, noting this would have adverse effect on the economy, with millions of jobs at stake as a result of the deadline.

ABCON, he stated, had initiated several strategic measures to mitigate job losses, including: continued engagement with the CBN and relevant financial regulators; lobbying efforts to influence policy adjustments; encouraging mergers and investor acquisitions to help smaller operators meet financial thresholds.