Naira begin new week on mixed note as CBN Reaffirms June deadline for BDC recapitalisation

The Nigerian naira began the week with a mixed performance across both the official and parallel markets, reflecting ongoing volatility in the foreign exchange landscape.

While the naira strengthened marginally in the parallel market, it recorded a consistent depreciation streak in the official market, raising fresh concerns over the currency’s stability.

According to figures released on the Central Bank of Nigeria (CBN) website, the naira closed at N1,554/$1 on Friday, marking a decline from N1,545/$1 on Wednesday and N1,540/$1 on Tuesday.

This reflects a week-long depreciation at the official Nigerian Autonomous Foreign Exchange Market (NAFEM). Intraday data showed the local currency traded as high as N1,570/$1 and as low as N1,537/$1, with an average rate of N1,551.85/$1 for the day.

Conversely, the naira recorded a slight gain in the parallel market, trading at N1,595/$1 on Friday. This was an improvement from N1,610/$1 on Wednesday, although slightly weaker than Tuesday’s N1,600/$1, according to sources.

Despite the uptick, analysts say the currency remains under pressure amid limited dollar liquidity and speculative demand.

Against the British pound, the naira extended its weakness in the parallel market, falling to N2,148/£1 on Friday from N2,145/£1 on Wednesday.

Last week’s currency movements coincided with regulatory developments from the Central Bank of Nigeria, which moved swiftly to quash rumours suggesting an extension of the recapitalisation deadline for Bureau De Change (BDC) operators.

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In a statement issued last week, the CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, described media reports claiming the recapitalisation deadline had been moved to December 31, 2025, as “false and misleading.” She affirmed that the original deadline of June 3, 2025, remains intact.

“The Central Bank wishes to restate that no extension has been granted. All BDC operators are required to meet the recapitalisation requirements as earlier announced,” the statement read.

Meanwhile, the Association of Bureau De Change Operators of Nigeria (ABCON) has reiterated that the June 2025 deadline stands and urged members to comply.

However, the group continues to express concern over the feasibility of the capital thresholds, arguing that the BDC model is not deposit-driven and does not require such high capitalisation.

“The recapitalisation is placing enormous financial strain on most of our members, many of whom are struggling to raise the new capital levels,” ABCON noted earlier in the week.

The recapitalisation directive is part of broader reforms being undertaken by the CBN under its mandate to regulate financial institutions as empowered by Section 56 of the Banks and Other Financial Institutions Act (BOFIA) 2020.

Market analysts suggest that unless dollar inflows improve and forex reforms yield greater stability, the naira’s current mixed trajectory may persist in the coming weeks