The Arewa Economic Forum (AEF) has urged the government to adopt a more inclusive Bureau De Change (BDC) policy, especially for smaller operators in the subsector.
AEF Chairman, Alh. Ibrahim Dandakata, made the call on Thursday in Abuja, urging policies that support regional BDC operations across the country.
He described the Central Bank of Nigeria’s (CBN) new BDC guidelines as overly strict and unsuitable for many members of the association.
“We strongly recommend extending the implementation window to a continuous process, similar to other financial institutions,” Dandakata said.
He suggested a minimum of six months to one year to allow for investor education, capital mobilisation, and regional cooperation.
“A rushed implementation will cause irreversible damage,” he warned.
Dandakata proposed the creation of Northern-led BDC consortia to support operators in the region and pool investment through inclusive vehicles.
He stressed the need for gradual, region-sensitive regulation, especially where informal finance remains critical to economic survival.
“This is how development happens—through inclusion, not exclusion,” he added.
The chairman called on the CBN to promote transparency in negotiations with the Association of Bureau de Change Operators of Nigeria (ABCON).
He noted that, if well-handled, the recapitalisation drive could help formalise and strengthen the BDC sector.
However, if mishandled, it could destroy legitimate businesses, deepen poverty, worsen unemployment, and further erode public trust.
Dandakata highlighted the BDC sector’s role in providing financial access in rural areas and supporting families during economic hardship.
He acknowledged the CBN’s goals of promoting financial integrity and aligning operations with global best practices.
“These are commendable in theory,” he said, “but in practice, the recapitalisation requirement threatens many Northern entrepreneurs.”
Before May 2024, the minimum capital to operate a BDC was N35 million under the old regulatory structure.
Under the new rules, Tier One BDCs must now have N2 billion in capital and may operate nationally with branches and franchise.
Tier Two BDCs need N500 million, limited to one state and five branches, with no franchise options allowed.
This represents a rise of over 1,300 per cent to 5,600 per cent —a near-impossible burden for most long-standing and law-abiding BDCs.
Dandakata warned that, if unaddressed, the policy could erase Northern presence from the BDC space entirely.
This, he said, would endanger job creation, foreign exchange access, and informal financial services in the North.
“We must consider the serious security implications. The North already suffers from terrorism and youth unemployment.
“Pushing thousands into joblessness will worsen insecurity,” he said.
He appealed to President Bola Tinubu and his advisers to treat this as a national security priority.
“This is not just economic—it’s a matter of urgent national stability,” he stated.
ABCON North Central Trustee, Alh. Abdulwahab Yusuf, said the new requirements are excessive and hard to meet quickly.
“We need more time or a reduction in the requirements,” he said.
He warned that if operators abandon their businesses, it would create serious social problems.
