Nigeria’s 1,435 BDCs lose operating licence after failing to meet recapitalisation

A total of 1,435 Bureau De Change operators have lost their operating licences after failing to meet the new capital requirements set by the Central Bank of Nigeria (CBN), marking one of the most sweeping regulatory clean-ups in the subsector.

The CBN made it clear that any legacy BDC that did not meet the conditions of the revised guidelines as of November 30, 2025, has automatically ceased to exist, as its licence is no longer valid.

The apex bank communicated this in a document titled ‘Frequently Asked Questions (FAQs) on the Current Reform of the Bureau De Change Sub-Sector, published on its website.

In response to a question on the fate of old BDCs unable to meet the new licensing requirements, the CBN explained that it had initially provided a six-month transition window, beginning on June 3, 2024 and ending on December 3, 2024, for all existing operators to comply with the recapitalisation and other provisions of the new guidelines. It added that its management later granted a further six-month extension, which ended on June 3, 2025, to give as many legacy operators as possible the opportunity to regularise their status.

According to the Central Bank, “any legacy BDC that failed to meet the requirements of the new Guidelines as at November 30, 2025, has ceased to be a BDC as its licence no longer exists,” urging the public to visit its website for the updated list of authorised operators.

The development comes against the backdrop of a massive overhaul in the sector. As of 2023, the CBN had confirmed 5,687 licensed BDCs in operation, but on March 1, 2024, it revoked the licences of 4,173 operators over serial regulatory breaches, which reduced the number of active BDCs to around 1,517. By November 27, 2025, only 82 operators were granted final licences under a stricter regulatory framework designed to sanitise the market.

The CBN also used the FAQ document to clarify issues frequently raised by stakeholders. Responding to concerns about how to distinguish a street trader from a licensed BDC, it explained that a street trader is anyone dealing in foreign currency on the streets or in public places without a valid licence or authorisation, typically engaging in cash transactions that are not properly documented. A licensed BDC, it said, is a legally recognised entity that operates strictly within the regulatory framework and appears on the list published on the CBN’s website.

The regulator further addressed questions about the transferability of BDC licences, stressing that a licence or ownership interest cannot be transferred without prior approval from the CBN. It emphasised that no BDC is permitted to undertake any action that results in a change of ownership or control, nor can it sell, dispose of or transfer any part of its business or licence, merge with another entity, restructure its capital, or hand over operations to a management agent without explicit regulatory consent. Any BDC seeking to enter a merger or acquisition arrangement must apply formally to the CBN.

On whether family members can pool funds to obtain a BDC licence, the bank confirmed that this is permitted, provided all requirements outlined in the guidelines are fully met. It also clarified that BDCs are not allowed to finance other trades or businesses outside the scope explicitly stated in the guidelines, regardless of their size or new capital levels.

Addressing concerns about limits on customer sales of foreign exchange to BDCs, the CBN said there is no specific cap on how much FX an individual may sell to a licensed BDC. However, it noted that operators must observe all Anti-Money Laundering, Combating the Financing of Terrorism and Counter-Proliferation Financing regulations, which require them to obtain relevant information from customers on the source of funds for transactions above $10,000.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks.

She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings.
Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.