CBN Extends Recapitalization Deadline For BDC Operators

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The Association of Bureaux De Change of Nigeria has announced that the Central Bank of Nigeria (CBN) has granted a six-month extension for BDC operators to complete their recapitalisation.

The President of ABCON, Aminu Gwadebe, announced this development yesterday during a virtual general meeting with members.

Naija News understands that due to this extension, the new deadline for recapitalisation is now set for June 3, 2025.

In May, the CBN introduced new operational guidelines for BDCs, which took effect on June 3.

These guidelines require all existing BDCs to re-apply for a new licence based on their chosen categories (Tier 1 and Tier 2 BDCs) and to meet the minimum capital requirements for the respective licence categories within six months from the effective date.

According to the guidelines, BDCs holding Tier 1 licences must maintain a capital base of ₦2 billion, while those with Tier 2 licences are required to have ₦500 million, along with non-refundable licence fees of ₦5 million and ₦2 million, respectively.

In his statement, Gwadebe noted that several BDCs have begun to comply with the CBN’s recapitalisation directive.

He further indicated that the apex bank has approved an additional six-month period for all BDCs to recapitalise their operations, extending the deadline from December 2024 to June 2025.

He said, “The CBN is willing to partner with BDCs to ensure that the recapitalisation process is seamless. We are sending a message of unity, collaboration, and opportunities to ABCON members to continue to strive to ensure they meet the new capital requirements. We thank the CBN for listening and giving us a six-month extension.”

He said the deadline applies to existing BDCs, while new operators seeking licences have an indefinite timeline to get their licences.

“I want us to brace up and see the opportunities in the recapitalisation, which are immeasurable. There are great opportunities,” Gwadabe said.

The leader of ABCON stated that the regulations set forth by the CBN authorize BDCs to obtain foreign currency from various sources, 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 issue prepaid debit cards.

Present at the meeting were more than 220 CBN-licensed BDCs, members of the ABCON Council, and other relevant stakeholders.