CBN Recapitalization Puts 3m Jobs At Risk, As Over 1,500 BDC Set To Shut Down

Following their failure to meet the deadline set by the Central Bank of Nigeria, CBN, close to 1,500 Bureau de Change operators across the country are set to close shop, Leadership Newspapers reports.

According to the President of the Association of Bureau De Change Operators of Nigeria, ABCON, Aminu Gwadabe, only few BDCs operators met the deadline set by the apex bank, which ended on Tuesday, June 3, 2025.

Gwadabe said the one year window set by the CBN for the operators to meet the deadline was too short, noting that the consequence of the BDC shutting down operation because they failed to meet the recapitalization deadline is enormous including job losses to the economy as more than three million Nigerians directly or indirectly are se to lose their livelihoods.

The magazine reported that the Yemi cardoso-led CBN had last year directed tier one BDC and tier two BDC firms to recapitalize to the tune of N2 billion and N500 million, respectively.

Only five percent of the BDC have met the deadline which expired today, according to the ABCON President, who warned that many operators may be forced to operate outside the regulatory oversight of the apex bank in other to remain in business.

He said the CBN should have been more concerned by ensuring that the operators report their operations to the regulators rather than forcing them to embark on recapitalization exercise.

Gwadabe: “Not more than five per cent have met the financial requirements and leaving over 95 per cent struggling with extinction. With the current slow pace of compliance, it is only an extension for the eligible BDC’s that will enable them to participate in the new reforms or face revocation.

“The 2024 CBN new guidelines on recapitalisation of BDCs in Nigeria is one of the reforms that intends to upgrade capacity, corporate governance, and efficient reporting while aligning with AML/CFT standards. It is indeed a journey, not a destination.”

“The elephant in the room is job losses. Millions of Nigerians will lose their means of livelihood directly or indirectly within the sub-sector,” he said.

“It is our concern that unable BDCs might be pushed to operate outside the regulated space, where players enjoy lesser regulatory burdens. This threatens both transparency and national security.”

The CBN had in May 2024 directed the BDC to obtain new licenses within six months, to be able to continue to operate in the country. But later in November, the apex bank extended the deadline by six months which ist set to expire today.