The Central Bank of Nigeria (CBN) has extended the deadline for BDC operators to recapitalise by six months.
President, Association of Bureaux De Change of Nigeria (ABCON) Aminu Gwadebe, revealed this during a virtual general meeting with members.
According to him, with this extension, the new deadline for the recapitalisation would be June 3, 2025.
In May, the CBN issued new operational guidelines for BDCs, which became effective June 3. Under the new guidelines, all existing BDCs are to re-apply for a new licence according to their preferred categories (Tier 1 and Tier 2 BDCs) and meet the minimum capital requirement of the licence category applied for within six months from the effective date of the guidelines.
According to the guidelines, BDCs with Tier 1 licences are expected to have a capital base worth N2 billion while Tier 2 licences must have N500 million with non-refundable licence fees of N5 million and N2 million, respectively.
Gwadebe pointed out that some BDCs have started complying with the CBN directive on recapitalisation.
“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 added.
The BDC president said the deadline applies to existing BDCs, while new operators seeking licences have an indefinite timeline to get their licences.
He pointed out that opportunities in the recapitalisation exercise are immeasurable, with great opportunities, hence the need for all BDC operators to brace up.
According to Gwadabe, the CBN regulation empowers BDCs to acquire foreign currency from diverse sources, sell foreign exchange, and open foreign currency and naira accounts with commercial or non-interest banks as well as collaborate with its bankers to issue prepaid debit cards.
The meeting was attended by over 220 CBN-licenced BDCs, ABCON Council members, and other stakeholders.
