AEF wants extension to CBN’s BDC recapitalization exercise
Arewa Economic Forum (AEF) has called on the Central Bank of Nigeria to extend the implementation of the recapitalization exercise for Bureaux de Change (BDC).
Chairman, Arewa Economic Forum (AEF), Alhaji Ibrahim Shehu Dandakata, who made the call Thursday at a press conference in Abuja, noted that rather than put a deadline, the exercise should be a continuous like other financial institutions, or a minimum of six (6) months or ideally one-year (12) months, to allow for investor sensitisation, capital mobilisation, and regional collaboration.
According to him, a rushed implementation might create irreversible damage.
The AEF is a coalition of Northern business leaders, intellectuals, technocrats, and grassroots stakeholders.
Before the introduction of the new recapitalisation guidelines in May 2024, the minimum capital requirement for obtaining a Bureau De Change (BDC) licence in Nigeria stood at ₦35 million. However, under the new directives of the Central Bank of Nigeria, Tier 1 BDCs are now required to have a minimum capital base of ₦2 billion. They are authorised to operate nationally, establish multiple branches, and appoint franchisees with prior approval.
Tier 2 BDCs must now possess ₦500 million in capital and are limited to operations within a single state, with a maximum of five branches. They are not permitted to appoint franchisees.
The AEF further called on the Apex Bank to promote transparency in negotiations with the Association of Bureau de Change Operators of Nigeria (ABCON) saying that if well-handled, the recapitalisation drive could help formalise and strengthen the BDC sector.
“But if mishandled, it may: destroy thousands of legitimate Northern businesses, deepen regional poverty, worsen youth unemployment, heighten insecurity and erode public trust in national institutions,” he said.
He added, “We urge Alhaji Aminu Gwadabe, President of the Association of Bureau de Change Operators of Nigeria (ABUCON), to demonstrate courage, firmness, and transparency in all ongoing engagements with policymakers on this highly sensitive issue. As a respected leader in the sector, he bears the responsibility of ensuring that any negotiated outcomes reflect the interests of all stakeholders—not just established elites, but also the grassroots operators, particularly those from the North who have historically built and sustained the BDC sub-sector over decades. This is a defining moment that calls for principled leadership and a commitment to equity within the industry.”
Dandakata also called for the creation of regional investment vehicles that would pool resources and support smaller BDC operators.
“We therefore urge Northern investors, political leaders, and business communities to rise to the challenge. Let us invest in our own, collaborate across states, and protect this vital industry.
“The BDC sector has, for decades, ensured financial access in rural and underserved areas, created thousands of jobs, offered flexible foreign exchange solutions, and helped many families survive harsh economic times
“The implication is clear: if left unaddressed, this policy will wipe out the entire Northern participation in the BDC space, a sector that has been pivotal to job creation, forex accessibility, and informal financial services in the region for decades.
“We cannot overlook the dangerous security implications of this development. Northern Nigeria is already reeling from the devastating effects of terrorism, rural banditry, and youth unemployment. Throwing thousands of BDC operators out of work will only add fuel to a volatile fire,” he further said.
