Bureau de Change (BDCs) operators in Nigeria continue to grapple with the challenge of meeting the N2 billion recapitalization requirement set by the Central Bank of Nigeria (CBN), despite the recent extension granted by the regulatory body. The recapitalization drive, aimed at strengthening the financial stability of BDCs and curbing illicit financial flows, has proved difficult for many operators, particularly smaller firms with limited access to capital.
The CBN initially set a deadline for the recapitalization, but following feedback from BDCs struggling to raise the necessary funds, the deadline was extended. However, many operators, particularly those in the informal sector, are still finding it difficult to comply with the new financial threshold.
Industry sources have pointed out that while larger BDCs are better positioned to meet the recapitalization requirements due to their established networks and financial resources, smaller and medium-sized operators are facing significant hurdles. These include limited access to credit, rising operational costs, and increased regulatory pressures.

“The extended deadline gives us more time, but the challenge is still real,” said a BDC operator in Lagos. “For many smaller players, finding the N2 billion is almost impossible, especially with the current economic climate.”
The recapitalization policy, which was introduced to enhance the capacity of BDCs to operate more efficiently and combat foreign exchange hoarding, has been met with mixed reactions. While some view it as a necessary step for improving the integrity of the forex market, others argue that it could lead to the consolidation of the industry, potentially pushing smaller firms out of business.
Economic analysts have expressed concerns that the failure of many BDCs to meet the recapitalization requirement could lead to reduced competition in the market, potentially allowing a few larger players to dominate the sector. This could lead to higher costs for consumers and reduced access to foreign currency for individuals and businesses in need of smaller transactions.
Despite these challenges, the CBN has reiterated its commitment to the policy, stating that it is an essential part of efforts to stabilize the foreign exchange market and ensure that the BDC sector operates in line with best international practices. The regulatory body has also emphasized that it will continue to provide support to BDCs in navigating the recapitalization process.
As the new deadline approaches, the fate of many BDCs remains uncertain. For those who are unable to meet the capital requirements, the industry may face a period of restructuring, which could reshape the landscape of Nigeria’s foreign exchange market.
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