CBN extends BDC recapitalization deadline to December 31 as Naira gains ground

The Central Bank of Nigeria (CBN) has informally extended the deadline for the ongoing recapitalization exercise for Bureau De Change (BDC) operators to December 31, 2025, granting operators additional time to meet the stringent new capital requirements.

The development, which comes amid continued appreciation of the naira against the US dollar across both official and parallel markets, was disclosed by BDC operators through internal communications within their professional group chat networks.

However, the apex bank is yet to issue an official public statement confirming the extension as of the time of reporting.

The revised deadline follows the lapse of the second deadline set by the CBN, which expired on June 3, 2025.

Initially, the bank had directed BDC operators to comply with the recapitalization framework by December 3, 2024, but later granted a six-month extension due to widespread industry appeals and low compliance levels.

Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria (ABCON), revealed that only about 10 percent of registered BDCs had complied with the recapitalization requirements as of the latest deadline.

He reiterated his earlier call for consolidation within the sector, urging BDCs to consider mergers as a viable path to meeting the new capital thresholds.

“Consolidation remains the most practical option for most operators under the current financial climate,” Gwadabe stated, emphasizing that the new framework demands a radical shift in the structure and operations of BDCs nationwide.

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The recapitalization policy, introduced by the CBN in February 2024, introduced a two-tier licensing system for BDCs:

Tier-1 BDCs are required to raise a minimum capital of ₦2 billion and will be licensed to operate nationwide with enhanced operational capabilities.

Tier-2 BDCs must raise at least ₦500 million and will be limited to operating within a single state.

The move is part of broader reforms by the CBN aimed at sanitizing the foreign exchange ecosystem, enhancing transparency, and curbing the influence of non-compliant and under-capitalized players in the FX market.

The informal announcement of the extended recapitalization deadline coincided with a notable appreciation of the naira in both the official and parallel foreign exchange markets on Tuesday.

Analysts attribute this positive trend to a combination of tighter monetary policies by the CBN, reduced speculation in the FX space, and broader confidence in ongoing reforms, including the BDC restructuring.

The strengthening of the local currency is expected to further reinforce the CBN’s argument for stricter control and standardization of BDC operations to ensure long-term stability in the FX market.

While BDC operators appear to have been notified through internal channels, financial stakeholders and industry observers are awaiting an official circular or directive from the CBN to confirm and formalize the new deadline.

Until then, many operators remain cautious, with some continuing to accelerate their capital raise efforts to avoid potential regulatory penalties.