No Deadline Extension for BDC Operators’ Recapitalization — CBN

• Over 3 million Jobs at risk

BY BONNY AMADI

Nigeria risks over three million job losses, as the Central Bank of Nigeria (CBN) foreclosed any form of extension for recapitalization of Bureau De Change (BDC) operators in the country.

The Central Bank of Nigeria (CBN) on Thursday re-emphasised that it has not extended the deadline for the recapitalisation of Bureau De Change (BDC) operators.

The CBN in May 2024 issued new operational guidelines for BDCs, which became effective on June 3, 2024, directing all existing BDCs to reapply for new licenses.

BDCs with Tier 1 licenses were expected to have a capital base of N2 billion, while Tier 2 licenses needed N500 million, with nonrefundable license fees of N5 million and N2 million respectively.

Both Tier 1 and Tier 2 BDCs were given six months to meet the minimum capital requirement of the license category applied for. The apex bank later extended the recapitalisation deadline by an additional six months, which will lapse on Tuesday, June 3.

With the new deadline on June 03, it was gathered that fear has enveloped the BDCs for ensuing mass job losses of estimated at over three million, as reports have it that less than 10 per cent of BDCs have com plied with the new capital threshold.

On June 11, an online news reported that the apex bank had extended the deadline, which closed on June 3, to December 31. However, Hakama Sidi Ali, the CBN acting director of the corporate communications department, described the information as false and misleading, stating that it should be disregarded.

Speaking in a statement on Wednesday, Ali said the bank has not granted any extension beyond the communicated deadline of June 3.

She urged the general public, journalists, media platforms, and all stakeholders to consistently verify information directly from official CBN sources.

The CBN official said such sources include the CBN website and authorised communication channels, before publishing or sharing news about the bank and its regulatory directives.

“The CBN remains committed to ensuring transparency, stability, and compliance in the foreign exchange market and will continue to engage with all relevant stakeholders in accordance with its statutory mandate,” Sidi Ali said.

As part of the revised framework introduced in February 2024, BDCs were required to meet new minimum capital requirements: N2 billion for tier-1 and N500 million for Tier-2 operators.

In May 2024, the CBN introduced revised operational guidelines for BDCs, effective June 3 of the same year. The financial regulator directed all operators to reapply for licences and pegged non-refundable ap- plication fees at N5 million for tier 1 and N2 million for tier 2.

Operators were also given an initial six-month deadline to comply with the new capital requirements, which was extended by an- other six months.

The Association of Bureau De Change Operators of Nigeria (ABCON), on June 2, appealed to the CBN to extend the recapitalisation deadline (which expired on June 3) and review licence requirements.

On June 3, after a meeting with the CBN, ABCON said the deadline remained sacrosanct.

It will be recalled that the Bureau De Change Operators (BDCs) had earlier on June 02, appealed to the Central Bank of Nigeria (CBN) to further extend the recapitalisation deadline and review license requirements to save jobs.

The BDCs, under the aegis of the Association of Bureau De Change Operators of Nigeria (ABCON), led by its President, Dr Aminu Gwadabe, disclosed in Lagos, that a further extension and review would give more members opportunities to meet the new capital threshold.

The CBN in May 2024 issued new operational guidelines for BDCs, which became effective on June 3, 2024, directing all existing BDCs to reapply for new licenses.

BDCs with Tier 1 licenses were expected to have a capital base of N2 billion, while Tier 2 licenses needed N500 million, with nonrefundable license fees of N5 million and N2 million respectively.

Both Tier 1 and Tier 2 BDCs were given six months to meet the minimum capital requirement of the license category applied for.

However, the apex bank later extended the recapitalisation deadline by an additional six months, which will lapse on Tuesday, June 3.

With the new deadline in sight, Gwadabe expressed fears of mass job losses, noting that less than 10 per cent of his members had complied with the new capital threshold.

He estimated that over three million jobs and livelihoods were at risk.

“The way forward to mitigate this is an appeal for further extension and a deliberate review of the financial requirements as some members strive to achieve them.

“The CBN should continue their stakeholder collaboration during the time of the extension to douse the anxiety.