As the sun rose on June 3, 2025, Bureau De Change (BDC) operators across Nigeria braced for what many have called a defining moment in the currency exchange sector. The deadline for recapitalisation set by the Central Bank of Nigeria (CBN) officially arrived—and the message from industry regulators remains clear and unwavering: comply or face expulsion.
The Association of Bureaux De Change Operators of Nigeria (ABCON), the industry’s umbrella body, confirmed on Monday that the CBN will not be extending the recapitalisation deadline. All registered BDCs must now meet the new capital threshold or risk losing their operating licenses.
“We’ve had enough time to prepare. June 3 stands firm,” said ABCON President, Aminu Gwadabe, in a stern but hopeful statement. “This is a new era for BDC operations in Nigeria.”
A Recap on the Recapitalisation Mandate
The CBN had earlier directed all BDC operators to increase their minimum capital base significantly—a move aimed at sanitising the sector, curbing illegal currency trading, and ensuring that only serious, well-capitalised operators remain in business.
The new policy raises the minimum capital requirement from ₦35 million to ₦500 million, a staggering leap that many small and mid-sized operators have struggled to meet.
According to CBN officials, the recapitalisation aims to:
- Strengthen regulatory oversight in a sector plagued by opacity and informality
- Prevent money laundering and illicit forex dealings
- Create a transparent, tech-driven ecosystem aligned with national monetary policies
The Impact: Winners, Losers, and the New Currency Landscape
With the deadline now passed, hundreds of smaller BDCs are expected to shut down, unable to meet the financial requirement. Those that survive will likely be the better-capitalised, more compliant operators—many of whom have already begun digitising operations, adopting KYC protocols, and enhancing customer trust.
Analysts say the move is likely to:
- Reduce the number of licensed BDCs by over 60%
- Push some informal operators underground
- Consolidate the market in favor of corporate-backed and institutionally funded players
“It’s survival of the fittest,” said Adesola Balogun, a forex analyst at Lagos-based Equator Consulting. “We’ll see fewer BDCs, but those that remain will be stronger, better regulated, and more integrated with the formal economy.”
ABCON’s Role: Support and Enforcement
ABCON, which has often acted as a buffer between the CBN and grassroots BDC operators, has taken an unusual hardline stance this time—backing the apex bank’s decision and urging its members to “upgrade or exit.”
In the weeks leading up to the deadline, ABCON facilitated workshops, provided access to cooperative funding schemes, and lobbied for grace periods—but ultimately acknowledged that compliance was non-negotiable.
“We’ve moved from the era of street-side currency kiosks to professional forex enterprises,” Gwadabe said. “This recapitalisation is not punishment; it’s an invitation to evolve.”
What Comes Next?
With the deadline now closed, the CBN is expected to:
- Begin a phased audit of all registered BDCs to confirm capital compliance
- Revoke licenses of defaulters
- Publish a list of approved BDCs that have met the new capital requirements
- Introduce a new digital monitoring system to track forex inflows and outflows through the BDC network
In tandem, ABCON has hinted at plans to develop a centralised trading platform that will link compliant BDCs to real-time market data and customer verification systems.
A Sector Reborn or Restricted?
As Nigeria grapples with currency volatility, inflation, and forex scarcity, the recapitalisation of BDCs could mark the beginning of a more orderly and effective exchange market. But it also raises tough questions: Will this purge create a monopoly? Can grassroots operators reinvent themselves fast enough? Will the underground market swell again?
What is certain is that June 3, 2025, marks the end of business as usual in Nigeria’s BDC landscape. And as the dust settles, a new, leaner, and hopefully cleaner sector will emerge.
Whether it thrives or stumbles, the message is clear: the age of informal currency exchange is over—welcome to the regulated era.
