Arewa Forum warns CBN BDC recapitalisation policy could cripple northern operators, displace youths, and escalate insecurity due to exclusion and high costs

The Arewa Economic Forum has raised alarm over the CBN BDC recapitalisation policy, warning it could wipe out northern participation in the Bureau De Change sector.

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Speaking in Abuja, Forum Chairman Dr Ibrahim Dandakata described the new capital thresholds as “astronomical” and far beyond the reach of most northern operators.

The Central Bank of Nigeria now requires Tier 1 BDCs to maintain a minimum capital of ₦2 billion and Tier 2 BDCs ₦500 million — a sharp rise from the previous ₦35 million.

“This policy, if left unaddressed, will wipe out the entire northern participation in the BDC space,” Dandakata warned. “It is not just an economic issue — it is a national security threat.”

Dandakata argued that over 90 per cent of compliant BDCs are based in Lagos, adding that major hubs in Kano, Abuja, Sokoto, and Benin are at risk of collapse. He compared the policy to more accessible licensing systems in countries like Kenya and South Africa.

President of Northern BDC Operators, Abdulwahab Yusuf, called the move “practical punishment,” questioning how operators could raise ₦2 billion without access to the capital market.

“You can’t even access funding from any bank,” Yusuf said. “Even the ₦500 million requirement for Tier 2 BDCs is nearly impossible for most.”

The Forum urged President Bola Tinubu to intervene and asked the CBN to extend the implementation deadline by at least six months. They also proposed forming regional BDC consortia to help smaller operators survive.

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Dandakata concluded by emphasising fairness in financial regulation, saying, “This is not a call for division but a firm plea for equity, fairness, and inclusive economic governance.”