Amid rising uncertainty and anxiety in Nigeria’s currency trading sector, licensed Bureau De Change (BDC) operators under the umbrella of the Association of Bureau De Change Operators of Nigeria (ABCON) have revealed that mergers, acquisitions, and strategic takeovers are now on the table as possible measures to meet the new capital requirements set by the Central Bank of Nigeria (CBN).
The development comes as the June 3, 2025 deadline for recapitalization lapses, with most BDCs still unable to comply. ABCON is now pushing for a further extension to avoid mass exits from the sector and collapse of hundreds of licensed operators.
In May 2024, the CBN released revised Regulatory and Supervisory Guidelines for BDCs, raising the minimum capital from N35 million to N2 billion for Tier-1 licenses (national operators) and N500 million for Tier-2 licenses (state-level operators).
Although the CBN granted a six-month extension in November 2024, compliance levels remain critically low.
ABCON President, Aminu Gwadebe, recently admitted that over 95 per cent of operators are at risk of shutting down unless urgent action is taken.
“We believe further extension is the first step to ensure readiness and inclusiveness. Definitely, mergers, acquisitions, and takeovers are among the many options our members are strategizing, but we need collaboration from the CBN on strategy sessions and zonal communication.”
He added that while a handful of operators have started exploring these consolidation strategies, time is of the essence, and the lack of clarity from the apex bank is worsening the situation.
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BDC operators are expressing deep concern over the uncertainty surrounding the recapitalization process. Adamu Ardo, a licensed operator, said the CBN’s silence and lack of a clear roadmap have placed enormous pressure on small-scale BDCs.
“Honestly, this recapitalization deadline is shaking our operations. Many of us operate on thin margins. Raising N2 billion without structured support will push smaller operators out of business,” Ardo lamented. “Some of us have even suspended transactions or reduced daily volumes to avoid further exposure.”
Operators say they are also grappling with customer anxiety, as clients are unsure if BDCs will remain functional post-deadline. Market rumours and lack of definitive guidance have eroded trust, with many customers delaying transactions.
Economist and CEO of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, warned that if the recapitalization policy is not carefully handled, it could unintentionally create monopolies in the parallel market, damaging competition and inflating exchange rate volatility.
“This capital hike may lead to industry concentration in the hands of a few big players, eliminating experienced operators who have served the market effectively for decades,” Yusuf said.
ABCON has long opposed the steep capital increase, arguing that the BDC business is not capital-intensive since operators do not accept deposits or issue loans. The association has instead advocated for industry consolidation through voluntary mergers rather than stringent recapitalization thresholds.