The Arewa Economic Forum (AEF), a leading northern Nigerian advocacy and think-tank, has raised serious concerns over the Central Bank of Nigeria’s (CBN) new Bureau de Change (BDC) recapitalization policy, describing it as economically exclusionary, regionally lopsided, and a looming threat to national security.
Speaking at a press conference in Abuja, the Chairman of AEF, Ibrahim Shehu Dandakata, cautioned that the new capital requirements could potentially shut out thousands of legitimate Northern BDC operators, many of whom have sustained the sub-sector for decades.
“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 recapitalization requirement poses a direct threat to thousands of legitimate Northern entrepreneurs and their families,” Dandakata stated.
Before the revised guidelines were introduced in May 2024, the minimum capital requirement for a BDC licence in Nigeria was ₦35 million. Under the new directives, Tier 1 BDCs must now have a minimum capital base of ₦2 billion and are permitted to operate nationally, open multiple branches, and appoint franchisees. Tier 2 BDCs must possess ₦500 million and are restricted to operating within a single state with a maximum of five branches, without the ability to franchise.
Dandakata described the capital hike as astronomical, an increase of over 1,300% to 5,600%, and warned that this level of financial demand is unattainable for most honest and longstanding BDC operators. He added that the timing of the policy was especially troubling, given the government’s anti-corruption stance and the exclusion of banks, NGOs, public officers, foreign nationals, and other financial institutions from BDC ownership, which further limits financing options.
The AEF noted that more than 90% of BDCs that have met the new requirements are based in the South, with Lagos alone accounting for the vast majority. The sector is now dominated by a single ethnic group. In contrast, less than 10% of compliant BDCs are owned by Northerners, despite Northern traders historically sustaining the sub-sector, particularly in commercial hubs such as Wapa in Kano, Zone 4 in Abuja, Broad Street in Lagos, and markets in Sokoto, Minna, Benin, and Port Harcourt.
Dandakata added that in several comparable countries, including South Africa, Kenya, Tanzania, Ghana, Egypt, the UAE, and India, the capital requirements for BDC operations remain far lower and more inclusive, enabling broader participation without compromising regulatory integrity. According to him, Nigeria’s new policy could wipe out Northern participation in the BDC space, a sector that has long contributed to job creation, foreign exchange accessibility, and informal financial services across the region.
He warned of the potential security fallout. “Northern Nigeria is already battling terrorism, banditry, and rampant youth unemployment. Rendering thousands of BDC operators jobless will only worsen the crisis,” he said. He urged President Bola Ahmed Tinubu and his advisers to urgently address the policy’s implications, adding that this is not just an economic policy issue but a matter of national security.
He specifically called on the National Security Adviser, Nuhu Ribadu, to act swiftly in assessing the broader socioeconomic dangers and preventing the mass displacement of Northern entrepreneurs. He also appealed to Finance Minister Wale Edun and CBN Governor Yemi Cardoso to reconsider the policy’s optics and regional imbalance, especially given that most top appointments in Nigeria’s financial institutions, including FIRS, SEC, PENCOM, and NSITF, are held by Southerners, predominantly of Yoruba origin.
“This is not a call for division; it is a firm plea for equity, fairness, and inclusive economic governance,” Dandakata stressed. He reminded the public that the AEF had earlier flagged concerns over what it described as a growing trend of “Yorubanisation” and “Lagos-centric” control of the nation’s economic architecture. While acknowledging the President’s prerogative to appoint trusted officials, he emphasized that national cohesion requires fair representation across regions.
In light of these concerns, the AEF proposed that the policy implementation timeline be extended to a minimum of six months — or ideally made continuous — to allow adequate time for investor sensitization, capital mobilization, and regional participation. It also called for the establishment of at least three Tier 1 Northern-led BDC consortia to pool resources and support operators, and for a regulatory approach that is more flexible and inclusive, especially in capital-scarce regions.
The AEF urged Aminu Gwadabe, President of the Association of Bureau de Change Operators of Nigeria (ABUCON), to show courage, transparency, and commitment in his engagement with policymakers. Dandakata said outcomes from these dialogues must reflect the interests of all stakeholders, not only elite operators but also grassroots players, particularly in the North.
He concluded with a call to action for Northern investors, leaders, and business communities to invest in the sector and collaborate in safeguarding its future. According to him, the BDC industry has played a crucial role in extending financial access, creating jobs, and supporting informal economies in underserved areas. “We must not allow this legacy to be erased in one policy stroke,” he said.
The Arewa Economic Forum reaffirmed its commitment to a united, inclusive, and prosperous Nigeria. “Let us work together to build an economy that includes — not excludes — the hardworking people of Northern Nigeria,” Dandakata said.
By PRNigeria
