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The Arewa Economic Forum (AEF) has voiced strong concerns over the Central Bank of Nigeria’s (CBN) new Bureau De Change (BDC) recapitalisation framework, describing the policy as “economically exclusionary and regionally lopsided.”
Speaking at a press conference in Abuja on Thursday, the AEF Chairman, Ibrahim Shehu Dandakata, said the recapitalisation requirements, which mandate a minimum capital base of ₦2 billion for Tier-1 BDCs and ₦500 million for Tier-2 BDCs pose an existential threat to thousands of long-standing BDC operators in Northern Nigeria.
“We acknowledge and appreciate the objectives behind the new CBN policy—to strengthen financial integrity, align BDC operations with global standards, and reduce market abuse. These are laudable goals in theory. However, in practice, the recapitalisation requirement poses a direct threat to thousands of legitimate Northern entrepreneurs and their families,” Dandakata stated.
He explained that prior to the revised guidelines introduced in February 2024, the minimum capital requirement for a BDC licence in Nigeria was ₦35 million.
“What we are seeing now is an astronomical hike of over 1,300% to 5,600%. This level of financial demand is simply unattainable for most honest and longstanding BDC operators,” he said.
The AEF chairman expressed worry that the policy could worsen regional economic disparities, noting that over 90 percent of BDCs that have met the new capital thresholds are based in the South, particularly in Lagos State.
“Lagos alone accounts for the vast majority of compliant operators. The sector is now increasingly dominated by a single ethnic group, which is a worrying development in a country as diverse as ours,” he added.
Dandakata also criticised the policy’s timing, stressing that it contradicts the federal government’s anti-corruption stance, especially given the exclusion of banks, NGOs, public officers, foreign nationals, and other financial institutions from investing in or owning BDCs.
“This exclusion significantly narrows the financing options available to small-scale operators in the North. It is a policy that unintentionally deepens inequality and fuels regional discontent,” he said.
He urged the Central Bank to reconsider the timeline and structure of the recapitalisation framework and adopt a more inclusive approach that considers the socio-economic realities of all regions.
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