|By Adejumo Adekunle-
-Group says guidelines threaten Northern businesses, deepen regional inequality
The Arewa Economic Forum (AEF) has strongly criticised the Central Bank of Nigeria’s (CBN) new Bureau De Change (BDC) recapitalisation policy, describing it as economically exclusionary and regionally lopsided.
Speaking during a press conference in Abuja on Thursday, the AEF Chairman, Ibrahim Shehu Dandakata, raised alarm over the new capital requirements, saying they endanger the survival of thousands of long-standing BDC operators in Northern Nigeria.
Under the CBN’s revised guidelines, Tier-1 BDCs are required to have a minimum capital base of ₦2 billion, while Tier-2 BDCs must raise ₦500 million. Dandakata warned that the policy, though aimed at strengthening financial integrity and aligning BDC operations with global standards, has dire consequences for Northern entrepreneurs.
“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,” Dandakata said.
He explained that before the February 2024 revision, the minimum capital requirement for a BDC licence stood at ₦35 million, meaning the new requirements mark an increase of between 1,300% and 5,600%.
“This level of financial demand is simply unattainable for most honest and longstanding BDC operators,” he stressed.
The AEF chair noted that over 90 percent of BDCs that have met the new capital thresholds are concentrated in Southern Nigeria, especially Lagos, a development he said risks further marginalising the North economically.
“Lagos alone accounts for the vast majority of compliant operators. The sector is now increasingly dominated by a single ethnic group, which is a worrying development in a country as diverse as ours,” he said.
He further argued that the policy’s implementation runs counter to the federal government’s anti-corruption and inclusion goals. He pointed out that by excluding banks, NGOs, public officers, foreign nationals, and other financial institutions from participating in the BDC market, the CBN has narrowed financing options for small-scale players in the North.
“This exclusion significantly narrows the financing options available to small-scale operators in the North. It is a policy that unintentionally deepens inequality and fuels regional discontent,” Dandakata said.
He called on the CBN to revisit the framework, urging the institution to consider a more inclusive and regionally balanced approach that reflects the socio-economic realities of the entire country.
“The recapitalisation framework must not create winners and losers along regional lines,” he added.
