The Arewa Economic Forum has raised alarm over the Central Bank of Nigeria’s (CBN) new recapitalisation policy for Bureau De Change (BDC) operators, warning that the directive could wipe out northern participation in the sector, displace thousands of small-scale operators, and fuel insecurity across the region.
Addressing journalists on Thursday in Abuja, the Forum’s Chairman, Dr. Ibrahim Dandakata, described the revised capital requirements as “astronomical” and beyond the financial reach of many long-standing northern BDC businesses.
Under the new CBN regulatory framework, Tier 1 BDCs are required to maintain a minimum capital base of ₦2 billion to operate nationwide, while Tier 2 BDCs must hold ₦500 million and are limited to operating within a single state. This marks a sharp escalation from the previous ₦35 million benchmark set in the 2019 guidelines — an increase ranging from 1,300% to 5,600%.
Dandakata expressed concern that over 90 percent of BDCs with the capacity to meet the new thresholds are located in the South, particularly Lagos, thereby jeopardising major northern BDC hubs such as Wapa Market in Kano, Zone 4 in Abuja, Sokoto, Minna, Benin, and parts of Lagos.
“This policy, if left unaddressed, will wipe out the entire northern participation in the BDC space. It is not just an economic issue — it is a national security threat,” Dandakata said.
“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.”
He criticised the policy for excluding banks, NGOs, foreigners, and public officials from ownership, and for introducing stricter rules on sourcing and verifying funds — conditions he believes are unreasonably restrictive.
Comparing Nigeria’s regulatory approach to other economies, Dandakata noted:
“In countries like South Africa, Ghana, Kenya, Egypt, and India, BDC licensing is relatively accessible and affordable. Nigeria’s model is becoming overly prohibitive.”
The Forum urged President Bola Tinubu to intervene by extending the implementation window by six to twelve months to enable proper sensitisation and capital mobilisation.
As part of the solution, Dandakata proposed the formation of northern-led BDC consortia and regional investment vehicles to help smaller operators stay afloat. He also advocated for a phased and inclusive regulatory framework that recognises regional disparities in access to capital and financial infrastructure.
He stressed the importance of transparency in CBN’s ongoing negotiations with the Association of Bureau De Change Operators of Nigeria (ABCON), calling for grassroots BDC operators to be adequately represented.
“Appointments into regulatory agencies must also reflect Nigeria’s diversity. Financial governance must be inclusive to avoid reinforcing perceptions of marginalisation,” he added.
Also speaking at the press briefing, President of the Northern BDC Operators, Abdulwahab Yusuf, described the new recapitalisation directive as “practical punishment.”
“How can you move share capital from ₦35 million to ₦2 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.”
He further noted that even the ₦500 million capital required for Tier 2 BDCs is out of reach for most operators.
“Forget about ₦2 billion — where do you get that kind of money? We’ve pleaded with the CBN to extend the timeline. They gave three months initially, then another three months. But the challenges persist,” he said.
Yusuf also highlighted the structural disadvantage faced by BDCs compared to banks:
“The banks are recapitalising, but they have access to the capital market. We don’t. So, how are we supposed to raise these funds? It feels like a punishment.”
The new recapitalisation policy, according to industry stakeholders, risks not only creating regional imbalances but could also collapse hundreds of BDCs and force many operators out of legitimate financial services into informal or unregulated markets.
As of press time, the CBN had not issued a response to the concerns raised.
