ABCON backtracks after meeting with CBN, says recapitalisation deadline remains sacrosanct

The Association of Bureau De Change Operators of Nigeria (ABCON) says the June 3 deadline set by the Central Bank of Nigeria (CBN) for the recapitalisation of bureau de change (BDC) operators is sacrosanct.

Aminu Gwadabe, ABCON president, spoke during an interview with NAN, after a stakeholders meeting with the apex bank in Lagos.

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 application 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 another six months.

The ABCON, on Monday, appealed to the CBN to extend the recapitalisation deadline (which expires today) and review licence requirements.

The association expressed concern that “less than 10 percent” of members have met the threshold, putting over three million jobs and livelihoods at risk.

According to NAN, the ABCON had a final stakeholders’ engagement with the apex bank in Lagos on Monday.

Speaking on the outcome of the meeting, Gwadabe thanked the apex bank for the engagement, adding that the BDCs’ recapitalisation deadline is sacrosanct.

“First, we want to thank the management of the Central bank for their enhanced consultations with stakeholders,” he said.

“The CBN have acknowledged that our subsector is a critical retail end subsector and that BDCs are important and potent tool of CBN’s policy transmission mechanisms.

“Discussions are ongoing and with some give and take.

“The deadline for the existing BDCs for recapitalisation by June 3rd, 2025 remains sacrosanct. Also, the minimum capital requirements of N2 billion for tier 1 and N500 million for tier 2 remain sacrosanct.”

The ABCON president also noted that new licence applications are still being accepted, with an understanding in place to fast-track the process for interested investors.

He added that some issues are still under discussion with “higher hopes of reaching a win-win situation.”