The Arewa Economic Forum (AEF) says the Central Bank of Nigeria’s new Bureau De Change (BDC) recapitalisation policy is economically exclusionary, regionally lopsided, and a dangerous threat to national security.
Warning of the potential security fallout, the group said: “Northern Nigeria is already battling terrorism, banditry, and rampant youth unemployment. Rendering thousands of BDC operators jobless will only worsen the crisis.”
Speaking at a Press Conference in Abuja, the Chairman of the Northern Nigerian advocacy and think-tank organisation, Alhaji Ibrahim Shehu Dandakata, cautioned that the new capital requirements could potentially shut out thousands of legitimate Northern BDC operators.
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.
AEF lamented that many of these operators had sustained the sub-sector for decades.
Dandakata said: “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 recapitalisation requirement poses a direct threat to thousands of legitimate Northern entrepreneurs and their families.”
He described the capital hike as astronomical—an increase of over 1,300 percent to 5,600 percent—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 limited financing options.
According to the, AEF over 90 percent of BDCs that have met the new requirements are based in the South, with Lagos alone accounting for the vast majority, and the sector now dominated by a single ethnic group.
In contrast, less than 10 percent 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 remained 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 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, Malam Nuhu Ribadu, to act swiftly in assessing the broader socio-economic dangers and preventing 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 emphasised that national cohesion requires fair representation across regions.
