About 1,500 Bureau De Change (BDC) operators throughout Nigeria are anticipated to close down following the expiration of the Central Bank of Nigeria’s (CBN) June 3 recapitalisation deadline.
The event comes after the CBN raised the minimal capital necessities for BDC operators in Could 2024—₦2 billion for Tier 1 licences and ₦500 million for Tier 2—up from the earlier ₦35 million.
Regardless of a six-month extension granted in November 2024, solely a small fraction of operators met the brand new necessities.
The mass closure is anticipated to have an effect on over three million jobs instantly and not directly linked to the sector.
The Affiliation of Bureau De Change Operators of Nigeria (ABCON), led by Dr. Aminu Gwadabe, has appealed to the CBN for one more extension and a overview of the coverage to keep away from large-scale job losses and disruption to the financial system.
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Nonetheless, the CBN has insisted that the deadline stays unchanged. It says the coverage is geared toward sanitising the sector, enhancing transparency, and aligning with worldwide requirements on anti-money laundering and {financial} regulation.
Analysts say the recapitalisation might result in business consolidation, with fewer however stronger and digitally-compliant BDCs rising.
ABCON is reportedly contemplating forming public restricted legal responsibility firms to assist smaller operators survive the brand new regulatory setting.
No additional extension has been introduced by the CBN as of the time of this report.
