BDC Operators Plan Mergers To Meet CBN’s N2bn Recapitalisation Before Deadline
- BDC operators are expected to meet the new capital requirements set by the Central Bank of Nigeria
- The CBN set a deadline for June 3, 2025, for BDC operators to recapitalise or risk losing their licence
- In an exclusive chat with Legit.ng Aminu Gwadabe, president of the ABCON said BDCs are determined to make it happen
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Bureau De Change (BDC) operators in Nigeria have started discussions on mergers and acquisitions to meet the recapitalisation deadline set by the Central Bank of Nigeria (CBN).
In a circular issued in May 2024, the CBN released fresh guidelines for the operations of the Bureau De Change in Nigeria, which include two new categories of licenses with different capital bases.
Source: Getty Images
According to the new rules, BDCs in the Tier 1 category would be required to have a minimum capital requirement of N2bn, pay N1m as a non-refundable application fee, and N5m as a non-refundable license fee.
The apex bank also disclosed that Tier 2 BDCs would be required to have a minimum capital base of N500m, N0.25m as a non-refundable application fee, and N2m as a non-refundable license fee, Punch reports.
The deadline given when the circular was released was December 3, 2024.
However many BDC operators struggled to meet the requirements of the CBN, which led to a deadline extension to June 3, 2025.
BDC operators move to meet requirements
Speaking to Legit.ng, Aminu Gwadabe, president of the Association of Bureau De Change Operators of Nigeria (ABCON), revealed that many BDCs were in talks to merge over the recapitalisation.
He said:
"Presently, we are mobilising our members to merge and meet up with the new Central Bank Regulation 2024 on the New financial capital requirement of N500m for Tier 2 and N2b for tier 1.
“There is discussion, engagement and sensitisation are ongoing across zones.”
CBN grants BDCs licence waiver
Legit.ng reported that the CBN approved the waiver of the 2025 annual license renewal fee for all existing Bureau De Change operators.
Reacting to the CBN decision Gwadabe said:
"On behalf of the entire members of the Central Bank licensed Bureaux de change operators I want to say a big thank you to the management of the Central Bank for the annual license renewal amnesty extended to our members.
"It also underscored the central Bank management commitment to ensuring the implementation of the New CBN Regulation 2024 on BDCs new financial capitalization Requirement.
"I therefore urge my members to adopt and embrace the Association’s propagation of Mergers to meet up the extended deadline of the recapitalization process before the extended deadline of June, 2025."
Economists predict N1,300/$ exchange rate in 2025
Legit.ng reported that the Nigerian Economic Summit Group (NESG) predicted that the naira will improve in the exchange market in 2025.
NESG gave this projection in its 2025 economic outlook.
According to NESG, the exchange rate forecast was based on higher foreign exchange earnings, driven by increased crude oil sales.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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Source: Legit.ng
Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.
Aminu Gwadabe (President at Association of Bureaux de Change Operators of Nigeria) Alhaji Aminu Gwadabe is the president of the Association of Bureau De Change Operators of Nigeria (ABCON) that represents the interests of licensed Bureau de Change operators in Nigeria. Gwadabe comments on issues relating to the foreign exchange market, currency exchange rates, and economic policies in Nigeria over the years.
