From Adanna Nnamani, Abuja
The Arewa Economic Forum has warned that the Central Bank of Nigeria’s (CBN) new Bureau De Change (BDC) recapitalisation policy could wipe out northern participation in the sector, displace thousands of small business owners, and worsen the region’s security challenges.
Chairman of the Forum, Ibrahim Dandakata, who raised the alarm at a press briefing in Abuja on Thursday, July 10, 2025, said the new regulatory framework issued by the apex bank has imposed “astronomical capital thresholds” that are unattainable for many longstanding northern BDC operators.
Under the new guidelines, Tier 1 BDC operators are required to possess a minimum capital of N2 billion to operate nationally, while Tier 2 operators must have at least N500 million and are limited to one state.
This, according to Dandakata, represents a sharp increase from the previous N35 million benchmark under the 2019 framework, an over 1,300 percent to 5,600 percent hike.
Dandakata expressed concern that over 90 percent of BDCs able to meet the new capital requirements are based in the South, with Lagos alone accounting for the majority.
He warned that vibrant BDC hubs such as Wapa in Kano, Zone 4 in Abuja, Sokoto, Minna, and parts of Lagos and Benin are at risk of collapsing under the new policy, which bars banks, NGOs, foreigners, and public officials from ownership, while also imposing strict vetting processes for funding sources.
Dandakata compared Nigeria’s new guidelines with policies in other African and Asian countries like South Africa, Ghana, Kenya, Egypt, and India, where BDC licensing remains relatively affordable and accessible, arguing that Nigeria’s current stance undermines financial inclusion and regional economic development.
Dandakata outlined key recommendations to address the concerns raised by the Forum, calling for an extension of the implementation window to at least six to twelve months to allow BDC operators enough time for sensitisation and capital mobilisation. He also urged the creation of regional investment vehicles, such as Northern-led BDC consortiums, to help smaller operators remain in business.
He further stressed the need for a more inclusive and gradual regulatory approach that considers regional differences in access to capital. Dandakata also called for transparency in ongoing negotiations by the Association of Bureau De Change Operators of Nigeria (ABCON) to ensure that grassroots operators are not left behind. He added that key appointments in financial regulatory institutions should be more balanced to reflect national diversity and reduce feelings of exclusion in the North.
He urged President Bola Tinubu to intervene immediately, warning that a rushed implementation will create irreversible damage.
“This policy, if left unaddressed, will wipe out the entire northern participation in the BDC space. It is not just an economic issue. It is a national security threat. You cannot displace thousands of youth from their means of livelihood in a region already battling terrorism, banditry, and high unemployment without expecting serious consequences.
“This is not a call for division but a firm plea for equity, fairness, and inclusive economic governance,” he stated.
Also speaking, President of Northern BDC Operators, Abdulwahab Yusuf, described the policy as practical punishment.
He said: “How can you move share capital from 35 million to 2 billion? And it is not only like that. You cannot even go to access money from any bank.
Yusuf further lamented: “Any money you even bring in, they have to vet it, find out how you got it. You have to give the history of the money. These are all the problems. So, it became so difficult for BDCs to meet all these requirements. And we have been asking: extend this time. The first time we made the request, they extended it by three months, and then later, another three months.
“500 million is not a joke. Let’s even forget about the billion. The 500 million they are talking about. Where do you get that money? So, we have been talking to them: extend this time, extend it, or otherwise, give us an open door where we can access funds.
“Just like the banking industries are doing today, they have been asked to recapitalise, but they are going to the capital market. We do not have that capital market. So, where do you want us to get this money? So, it’s like a punishment. And so, I think this request or demand is coming at the right time.”
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