CBN extends BDC recapitalisation deadline to December 31

Central Bank of Nigeria (CBN) has extended the deadline for the Bureau De Change (BDC) recapitalisation exercise to December 31, 2025.

This marks the second extension since the recapitalisation framework was introduced in February 2024.

Originally scheduled for December 3, 2024, the deadline was first moved to June 3, 2025, in response to low compliance rates and feedback from stakeholders.

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With this new extension, BDC operators now have 18 additional months to meet the updated capital requirements under the revised regulatory framework.

The recapitalisation exercise introduces a two-tier licensing structure: Tier-1 BDCs must raise a minimum capital of ₦2 billion and are allowed to operate nationwide, including offering digital forex services and inter-state transactions; Tier-2 BDCs are required to raise ₦500 million and are restricted to operating within a single state.

This initiative is part of the CBN’s broader effort to restructure and strengthen the retail foreign exchange market, aiming to ensure that BDCs are financially stable, AML-compliant, and better positioned to support monetary policy goals.

The extension follows concerns from industry players about the slow pace of compliance. Internal communications and circulars within BDC networks have confirmed the new timeline.

Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria (ABCON), welcomed the move, calling it a “necessary intervention” to prevent mass licence forfeitures.

He noted that compliance levels remain “alarmingly low,” and said the additional time will help operators mobilise resources to meet the new standards.

According to the CBN, this extension is part of a phased implementation strategy to de-risk the BDC segment and align it with global best practices.

The bank reaffirmed its commitment to curbing speculative activity, improving market transparency, and creating a more stable FX environment.

Analysts view the extension as a stabilising move, giving serious operators time to reorganise. However, they warn that continued delays in enforcement could undermine investor confidence and derail long-term reform objectives.

The CBN has made no changes to the previously announced capital thresholds or operational guidelines.

All BDCs are expected to comply by the new deadline or risk having their licences revoked.

The recapitalisation drive is a core component of the CBN’s strategy to strengthen financial institutions, stabilise the naira, and foster a more efficient and transparent FX market under the current administration.