Bureau de Change (BDC) operators have sent an appeal to the Central Bank of Nigeria (CBN), as over 90% fail to meet the revised licence requirements before the deadline.

The recapitalisation of BDC operators was one of several moves the CBN adopted in 2024 to sanitise and strengthen Nigeria’s foreign exchange market, amid many teething challenges.

The CBN announced a review of BDC licences and operational requirements in May 2024, introducing a two-tier licencing system with tier 1 BDC operators mandated to have a N2 billion capital base, and tier 2 operators required to have N500 million.

The CBN also directed all the operators to reapply for licences with a non-refundable application fee of N5 million for tier 1 and N2 million for tier 2 operators. The review came with an initial six-month deadline, which was later extended by six months to Tuesday, June 3, 2025. Still, less than 10% of the operators have registered.

BDC operators appeal for deadline extension

Now, the BDC operators have appealed to the CBN to review the licence requirements and extend the deadline again to give them more room to comply.

Speaking with the News Agency of Nigeria (NAN), the President of the Association of Bureau de Change Operators of Nigeria (ABCON), Aminu Gwadabe, stated that if CBN takes action right away, up to three million jobs could be lost.

He noted that many of the operators have still been unable to meet the new capital threshold despite the earlier extension.

He commended the CBN for the stakeholder collaborations during the extension period and the acceleration of the licensing process.

Gwadabe also urged the CBN to review the financial requirements to allow more members to achieve them and prevent job losses.

BDC operators consider mergers as CBN deadline expires

Gwadabe also hinted that some operators are considering mergers and investor acquisitions in a bid to meet the requirements.

This could involve up to 10 or 15 entities coming together to float a new structure as a public limited liability company.

Gwadabe explained: “As earlier mentioned, we have also applied to the CBN for ‘No Objection’ on our plans to float public limited liability company with the capacity to absorb many of our members but met a holding response from the CBN.”

Recall that the CBN had waived the licence renewal fees to ease the burden on BDCs as they work towards the new capital requirements.