Beyond technical implications, concerns linger over longstanding regional imbalances in Nigeria’s regulatory ecosystem. I join my voice with Mallam Ibrahim Shehu Dandakata and the AEF in urging the Federal Government to weigh the gravity of this decision — particularly its impact on vulnerable Northern operators. We appeal to President Tinubu, the National Security Adviser, and the Minister of Finance to prioritise fairness, equity, and inclusive economic governance.
As a student intern at a media outfit, I’ve had the privilege of observing the media in action — particularly how it covers and analyses pressing national issues. On 10 July, fellow interns and I were assigned to cover a press briefing at the PRNigeria Centre in Abuja, where the Chairman of the Arewa Economic Forum (AEF), Mallam Ibrahim Shehu Dandakata, addressed the press.
The Forum was deeply critical of the Central Bank of Nigeria’s (CBN) new recapitalisation policy for Bureau De Change (BDC) operators. Previously, the capital requirement stood at ₦35 million. Under the revised guidelines, Tier 1 operators must now do ₦2 billion, while Tier 2 operators are expected to have ₦500 million — an increase of 1,300 per cent to 5,600 per cent. The AEF argued that this policy is economically exclusionary, regionally biased, and could potentially eliminate thousands of Northern-based BDC operators.
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Although Mallam Dandakata acknowledged the CBN’s intentions of promoting financial integrity and aligning with global standards, he stressed that the policy is largely impractical for Northern entrepreneurs. He pointed out that over 90 per cent of the BDCs likely to meet the new requirements are located in Southern Nigeria, particularly in Lagos, leaving Northern hubs such as Kano and Abuja sidelined.
The AEF highlighted far-reaching consequences: mass job losses, heightened insecurity, and deepening economic marginalisation. They also criticised restrictions on ownership — excluding banks, NGOs, and foreign nationals — which further narrows financing options.
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Mallam Dandakata appealed to President Tinubu, the National Security Adviser, and financial regulators to reconsider both the timeline and the regional impact of the policy. Among his suggestions were extending the implementation window by six to 12 months, forming Northern-led BDC consortia, and improving regional balance in financial governance.
As PRNigeria interns, we were challenged to cast aside our student bias and approach this assignment with journalistic rigour. Our analysis confirmed the Forum’s apprehensions: the drastic recapitalisation restructuring, while perhaps well-intentioned, presents an existential threat to many BDC operators, particularly in the North.
While the CBN defends the policy’s credibility — framing it as a tool to stem illicit financial flows tied to terrorism and regulate forex transactions — the reality for many operators is grim. In a region already plagued by insecurity, banditry, and terrorism, the policy jeopardises livelihoods that depend on BDC activity.
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Looking back, this policy first surfaced in 2024, triggering widespread backlash and a delay in its implementation. Now, with the revised deadline expired and Northern operators still unable to raise sufficient capital, the question looms: How can they convince the government that these financial thresholds are out of reach, even for those with influence?
Some argue that about 10 per cent of operators have managed to meet the capital requirements, but nearly 80 per cent of them are from the South — a region more economically stable and conducive to trade. Northern operators, on the other hand, face challenges such as limited access to bank loans and the loss of income sources due to insecurity. Meeting the capital benchmark feels insurmountable.
With many operators being forced out of the market, we’re witnessing a troubling ripple effect — rising unemployment, deepening poverty, and increased insecurity. In March 2024, after the CBN revoked over 4,000 BDC licenses, black market exchange rates in Abuja’s Wuse district surged from $1,450 to $1,770 per USD. This shift only drove more activity underground.
To its credit, the CBN maintains that the policy will foster transparency, combat money laundering, and ensure long-term financial stability. But without thoughtful engagement with key stakeholders, including the Association of the Bureaux de Change (ABCON), the policy risks unintended economic chaos.
Beyond technical implications, concerns linger over longstanding regional imbalances in Nigeria’s regulatory ecosystem. I join my voice with Mallam Ibrahim Shehu Dandakata and the AEF in urging the Federal Government to weigh the gravity of this decision — particularly its impact on vulnerable Northern operators. We appeal to President Tinubu, the National Security Adviser, and the Minister of Finance to prioritise fairness, equity, and inclusive economic governance.
The AEF has proposed pragmatic solutions: extending the implementation timeline by six to 12 months, establishing regional BDC consortia, and fostering more inclusive stakeholder dialogues. If Nigeria is serious about equitable development, inclusion must be at the heart of its economic reforms.
Egiganya Jo-Madugu is a Mass Communication student at Nile University of Nigeria and an PRNigeria intern in Abuja. She can be reached via: [email protected]
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