Bureau De Change (BDC) operators in Nigeria have started discussions on mergers and acquisitions to meet the recapitalisation deadline set by the Central Bank of Nigeria (CBN).
In a circular issued in May 2024, the CBN released fresh guidelines for the operations of the Bureau De Change in Nigeria, which include two new categories of licenses with different capital bases.
According to the new rules, BDCs in the Tier 1 category would be required to have a minimum capital requirement of N2bn, pay N1m as a non-refundable application fee, and N5m as a non-refundable license fee.
The apex bank also disclosed that Tier 2 BDCs would be required to have a minimum capital base of N500m, N0.25m as a non-refundable application fee, and N2m as a non-refundable license fee, Punch reports.
The deadline given when the circular was released was December 3, 2024.
However many BDC operators struggled to meet the requirements of the CBN, which led to a deadline extension to June 3, 2025.
Speaking to TimesNow.com.ng, Aminu Gwadabe, president of the Association of Bureau De Change Operators of Nigeria (ABCON), revealed that many BDCs were in talks to merge over the recapitalisation.
He said:
TimesNow.com.ng reported that the CBN approved the waiver of the 2025 annual license renewal fee for all existing Bureau De Change operators.
Reacting to the CBN decision Gwadabe said:
TimesNow.com.ng reported that the Nigerian Economic Summit Group (NESG) predicted that the naira will improve in the exchange market in 2025.
NESG gave this projection in its 2025 economic outlook.
According to NESG, the exchange rate forecast was based on higher foreign exchange earnings, driven by increased crude oil sales.
Proofreading by Nkem Ikeke, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
