Central Bank Of Nigeria Announces Extension Of Recapitalization Deadline For BDCs

Central Bank Of Nigeria Announces Extension Of Recapitalization Deadline For BDCsThe Association of Bureaux De Change Operators of Nigeria (ABCON) has announced that the Central Bank of Nigeria (CBN) has granted a six-month extension for BDC operators to complete their recapitalization. The extension, which moves the original deadline from December 2024 to June 3, 2025, was confirmed by ABCON President, Aminu Gwadebe, during a virtual general meeting with association members on Monday.....KINDLY READ THE FULL STORY HERE▶

This extension follows new operational guidelines introduced by the CBN in May, which took effect on June 3, 2024. These guidelines require existing BDCs to reapply for licenses in one of two categories (Tier 1 or Tier 2) and meet the respective capital requirements within six months. According to the regulations, Tier 1 BDCs must have a capital base of ₦2 billion, while Tier 2 BDCs are required to maintain ₦500 million. Additionally, BDCs must pay non-refundable license fees of ₦5 million for Tier 1 and ₦2 million for Tier 2.

Gwadebe highlighted that several BDCs have already begun taking steps to meet the CBN’s recapitalization requirements. He expressed gratitude to the CBN for the six-month extension, emphasizing that it provides BDCs with more time to comply. “We thank the CBN for listening and giving us the extra time,” he said, adding that the deadline extension offers an opportunity for BDCs to adjust their operations and ensure compliance.

The ABCON President further noted that while the new deadline applies to existing BDCs, new operators seeking licenses will have an indefinite timeline to meet the necessary requirements. “The recapitalization process presents immeasurable opportunities, and we must be prepared to take advantage of them,” he added.

The guidelines also allow BDCs to source foreign currency from various channels, engage in forex sales, and open both foreign currency and naira accounts with commercial or non-interest banks. Additionally, BDCs are authorized to collaborate with their banking partners to issue prepaid debit cards.

The virtual meeting was attended by over 220 CBN-licensed BDCs, members of the ABCON Council, and other relevant stakeholders in the foreign exchange sector.

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