The Arewa Economic Forum (AEF), a prominent Northern Nigeria-based policy think tank, has raised serious concerns over the Central Bank of Nigeria’s (CBN) revised recapitalisation policy for Bureau De Change (BDC) operators, warning that the move could effectively shut out Northern stakeholders from the foreign exchange sub-sector.
At a press conference held in Abuja on Thursday, the AEF Chairman, Alhaji Ibrahim Shehu Dandakata, described the CBN’s policy as “economically exclusionary and regionally lopsided.” He argued that the drastic upward review in capital requirements threatens the survival of thousands of legitimate BDCs operating in the North and risks concentrating economic power in the hands of a few operators from a specific region.
Recall that in February 2024, the CBN announced sweeping reforms for BDC operations as part of its effort to sanitise the foreign exchange market and bring local practices in line with international standards. The apex bank set June 3, 2025, as the compliance deadline for all existing BDCs to meet the revised capital benchmarks: ₦2 billion for Tier-1 BDCs with national coverage, and ₦500 million for Tier-2 operators, who will be limited to a single state and no more than five branches.
Prior to this, the minimum capital requirement for a BDC license was ₦35 million, representing a massive increase of over 5,600% for Tier-1 and 1,300% for Tier-2 operators. Dandakata described the hike as unrealistic and ill-timed, especially in a period marked by economic fragility and limited access to capital for small-scale operators in the North.
“This policy disproportionately affects Northern entrepreneurs, many of whom have operated BDCs legitimately for decades,” said Dandakata. “Over 90% of the BDCs that have met the recapitalisation threshold are located in the South, particularly Lagos, and the sector is now being dominated by a single ethnic group. That is not how a diverse economy should function.”
He acknowledged the rationale behind the reforms—improved financial integrity, reduced market abuse, and alignment with global standards—but warned that a blanket approach without adequate financial support for regional operators will worsen inequality and deepen economic marginalisation.
The AEF further criticised the policy’s rigidity, especially with new restrictions barring NGOs, public officers, banks, foreign nationals, and financial institutions from owning BDCs. This, they argue, significantly narrows the pool of investors that legitimate BDCs can approach for recapitalisation support, particularly in underserved regions like the North.
While calling for an urgent policy review, Dandakata urged the CBN to adopt a more regionally sensitive and inclusion-driven strategy, suggesting the introduction of flexible repayment plans or regional grants to support BDCs transitioning to the new structure.
“The CBN must recognise that economic policy in a diverse country like Nigeria must not just be about numbers, but about inclusivity and fairness. Northern Nigeria must not be priced out of the foreign exchange market,” he said.
This development comes at a time when the CBN is battling negative public perception over the stability of Nigeria’s banking sector. Just days ago, the apex bank released a public statement assuring depositors that Nigerian banks remain safe and sound, amid fears triggered by reports implicating former CBN Governor, Godwin Emefiele, in shady acquisitions of Union Bank and Keystone Bank through proxies.
The CBN’s spokesperson, Hakama Sidi-Ali, reaffirmed the regulator’s commitment to financial system stability and urged the public to disregard unfounded media reports.