The Arewa Economic Forum (AEF), a leading northern Nigeria Economic and advocacy think-tank, has raised concerns over the Central Bank of Nigeria’s (CBN) new Bureau De Change (BDC) recapitalisation policy, describing it as ‘economically exclusionary and regionally lopsided.’
Daily Trust reports that the Central Bank of Nigeria (CBN) in 2024 announced June 3, 2025 as the deadline for Bureau De Change (BDC) operators to recapitalise if they want to remain in operation.
As part of the revised framework introduced in February 2024, CBN stated that BDCs are required to meet new minimum capital requirements including N2 billion for Tier-1 and N500 million for Tier-2 operators.
Speaking at a press conference in Abuja, the Chairman of AEF, Alhaji Ibrahim Shehu Dandakata, cautioned that the new capital requirements could potentially shut out thousands of legitimate Northern BDC operators, many of whom have sustained the sub-sector for decades.
“We acknowledge and appreciate the objectives behind the new CBN policy—to strengthen financial integrity, align BDC operations with global standards, and reduce market abuse. These are laudable goals in theory. However, in practice, the recapitalisation requirement poses a direct threat to thousands of legitimate Northern entrepreneurs and their families,” Dandakata stated.
Speaking further, he said “Before the revised guidelines were introduced in May 2024, the minimum capital requirement for a BDC licence in Nigeria was ₦35 million. Under the new directives, Tier 1 BDCs must now have a minimum capital base of ₦2 billion and are permitted to operate nationally, open multiple branches, and appoint franchisees. Tier 2 BDCs must possess ₦500 million and are restricted to operating within a single state with a maximum of five branches, without the ability to franchise.
“The capital hike as astronomical—an increase of over 1,300% to 5,600%—and warned that this level of financial demand is unattainable for most honest and longstanding BDC operators. He added that the timing of the policy was especially troubling, given the government’s anti-corruption stance and the exclusion of banks, NGOs, public officers, foreign nationals, and other financial institutions from BDC ownership, which further limits financing options,” he lamented.
He noted that more than 90% of BDCs that have met the new requirements are based in the South, with Lagos alone accounting for the vast majority, adding the sector is now dominated by a single ethnic group.
