The Arewa Economic Forum (AEF), a coalition of Northern business leaders and stakeholders, has expressed grave concerns over the Central Bank of Nigeria’s (CBN) new Regulatory and Supervisory Guidelines for Bureau De Change (BDC) operations. The policy, which includes a significant increase in capital requirements for BDC operators, has sparked fears of economic exclusion and heightened insecurity in Northern Nigeria.
According to the AEF Chairman, Alhaji Ibrahim Shehu Dandakata, “This policy will wipe out the entire Northern participation in the BDC space, a sector that has been pivotal to job creation, forex accessibility, and informal financial services in the region for decades.”
The new guidelines require Tier 1 BDCs to have a minimum capital base of ₦2 billion, while Tier 2 BDCs must possess ₦500 million. The AEF argues that this represents an “astronomical increase” of over 1,300% to 5,600%, which is unattainable for many sincere and long-standing BDC operators, especially those in the North.
The Forum notes that out of over 1,600 registered BDCs in Nigeria, more than 90% of those able to meet the new capital requirements are based in the South, with Lagos alone accounting for the overwhelming majority. “This is not merely an economic policy matter—it is a pressing national security issue,” Dandakata warned.
The AEF has called on President Bola Ahmed Tinubu and key advisers to give urgent attention to these concerns, urging the National Security Adviser, Malam Nuhu Ribadu, to assess the broader implications of this policy and act swiftly to prevent socio-economic fallout.
The Forum has also proposed several recommendations, including granting a policy extension, creating regional investment vehicles, promoting inclusive guidelines, and encouraging transparency in negotiations with policymakers.
According to Dandakata, “If handled correctly, the recapitalisation drive can formalise and strengthen BDC operations. But if mishandled, it may destroy thousands of legitimate Northern businesses, deepen regional poverty, worsen youth unemployment, heighten insecurity and erode public trust in national institutions.”
The AEF believes that this policy has the potential to exacerbate existing security challenges in Northern Nigeria, where thousands of BDC operators may be thrown out of work, adding fuel to a volatile fire.
As the situation unfolds, the AEF urges Northern investors, political leaders, and business communities to rise to the challenge and invest in their own, collaborate across states, and protect this vital industry.
