As Nigeria continues to implement foreign exchange (forex) market reforms, Bureau de Change (BDC) operators are expressing optimism about the Naira’s prospects in 2025. Many believe these reforms could lead to a stronger and more stable currency, boost investor confidence, and enhance the overall efficiency of forex trading.
However, alongside this optimism, concerns are growing over the Central Bank of Nigeria’s (CBN) new N2 billion recapitalization policy, which operators fear could negatively impact their businesses and the broader forex market.
BDC operators are hopeful that ongoing policy measures will improve forex liquidity, making foreign exchange more accessible to businesses and investors. Increased regulatory oversight is also expected to reduce currency speculation and illegal trading, helping to stabilize the Naira.
Additionally, reforms aimed at fostering a more investor-friendly environment could attract foreign capital, further strengthening the currency and easing inflationary pressures. If these initiatives are implemented effectively, the Naira’s appreciation against major foreign currencies could become a reality in 2025.
Despite their optimism, BDC operators are raising concerns over the CBN’s recapitalization policy, introduced in May 2024. The policy requires Tier-1 BDC operators to increase their minimum capital requirement to N2 billion, while Tier-2 operators must meet a threshold of N500 million.
The CBN argues that this move is necessary to strengthen the financial health of the sector, curb illegal forex trading, and align Nigeria’s BDC industry with international best practices.
Many operators, however, worry that the policy could drive smaller businesses out of the market, concentrating control in the hands of a few large players. There are also fears that restricting the number of BDC operators could reduce forex accessibility, particularly for retail traders and small businesses.
Calls for a comprehensive review of the policy are growing, with stakeholders urging the CBN to adopt a more inclusive approach that supports both large and small operators.