New CBN BDC policy threatens northern operators, Warns Arewa Economic Forum

The Central Bank of Nigeria’s (CBN) new recapitalization policy for Bureau De Change (BDC) operators is poised to decimate northern participation in the sector, displace thousands of small-scale operators, and could significantly worsen insecurity in the region, according to a stark warning from the Arewa Economic Forum.

Dr. Ibrahim Dandakata, Chairman of the Arewa Economic Forum, minced no words at a press briefing in Abuja on Thursday.

He slammed the revised capital requirements as “astronomical” and far beyond the reach of most long-standing northern BDC operators.

Under the CBN’s updated framework, Tier 1 BDCs must now boast a minimum capital base of N2 billion for nationwide operations, while Tier 2 operators need at least N500 million and are restricted to a single state.

This represents an astronomical jump of between 1,300% and 5,600% from the previous N35 million requirement under the 2019 guidelines.

Dandakata voiced deep concern that over 90% of BDCs currently positioned to meet these new thresholds are concentrated in the South, particularly Lagos.

He warned that major BDC hubs in traditional northern markets like Kano’s Wapa, Zone 4 in Abuja, Sokoto, Minna, and even parts of Lagos and Benin, face imminent collapse.

The new policy also prohibits ownership by banks, NGOs, foreigners, and public officials, alongside imposing stringent requirements for verifying funding sources.

Comparing Nigeria’s policy to more accessible and affordable BDC licensing models in countries like South Africa, Ghana, Kenya, Egypt, and India, Dandakata called Nigeria’s increasingly restrictive approach counterproductive.

“This policy, if left unaddressed, will wipe out the entire northern participation in the BDC space,” Dandakata cautioned.

“It is not just an economic issue — it is a national security threat. You cannot displace thousands of youths from their means of livelihood in a region already battling terrorism, banditry, and high unemployment without expecting serious consequences. This is not a call for division but a firm plea for equity, fairness, and inclusive economic governance.”

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He urgently called on President Bola Tinubu to intervene and implored the CBN to extend the implementation window by six to twelve months for proper sensitization and capital mobilization.

Dandakata also proposed the creation of northern-led BDC consortia and regional investment vehicles to help smaller operators stay in business.

He advocated for a more inclusive, phased regulatory approach that considers regional disparities in access to capital and stressed the need for transparency in ongoing negotiations between the CBN and the Association of Bureau De Change Operators of Nigeria (ABCON), insisting that grassroots players must not be sidelined.

Abdulwahab Yusuf, President of Northern BDC Operators, echoed these sentiments, labeling the recapitalization directive as “practical punishment.”

“How can you move share capital from N35 million to N2 billion? And it’s not just that — you can’t even access funding from any bank,” Yusuf lamented.

“Any money you bring in must be vetted. You have to give the full history of the money. These are all serious obstacles.”

Yusuf pointed out the disparity with banks, which are also recapitalizing but have access to the capital market—a privilege not extended to BDCs.

“We don’t. So, how are we supposed to raise these funds? It feels like a punishment,” he concluded.