The Arewa Economic Forum (AEF), has raised serious concerns over the Central Bank of Nigeria’s (CBN) new Bureau De Change (BDC) recapitalisation policy, describing it as economically exclusionary, regionally lopsided, and a looming threat to national security.
Alhaji Ibrahim Shehu Dandakata, Chairman of the AEF, told journalists in Abuja, 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.
Shehu 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 said.
He noted that before the revised guidelines were introduced in May 2024, the minimum capital requirement for a BDC licence in Nigeria was ₦35 million, adding however, that under the new directives, Tier 1 BDCs are expected to have a minimum capital base of ₦2 billion and are permitted to operate nationally, open multiple branches, and appoint franchisees.
Similarly, he said that Tier 2 BDCs are expected to possess ₦500 million and restricted to operating within a single state with a maximum of five branches, without the ability to franchise.
Shehu therefore 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.
The AEF Chairman also said 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.
Shehu further said that more than 90 per cent 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.
According to him; “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”.
Shehu 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.
He said that 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, and therefore warned of the potential security fallout.
He said; “Northern Nigeria is already battling terrorism, banditry, and rampant youth unemployment. Rendering thousands of BDC operators jobless will only worsen the crisis”.
Accordingly, the AEF 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.
Shehu also appealed to the Minister of Finance, Mr. 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.
In the words of Shehu; “This is not a call for division; it is a firm plea for equity, fairness, and inclusive economic governance”
He said the AEF had flagged concerns over what it described as a growing trend of “Yorubanisation” and “Lagos-centric” control of the nation’s economic architecture, even as he acknowledged the President’s prerogative to appoint trusted officials, adding however, that national cohesion requires fair representation across regions.
