The Central Bank of Nigeria (CBN) has sustained its tight restrictions on Bureau De Change (BDC) operators’ access to the official foreign exchange market, citing serious concerns over regulatory control, compliance risks, and past market abuses.
Market operators and forex traders who spoke to Nairametrics revealed that the apex bank continues to favour a bank-led approach to foreign exchange distribution, limiting BDCs’ participation despite repeated calls for greater inclusion.
According to industry sources, the CBN’s cautious stance is driven primarily by fears of arbitrage, round-tripping, money laundering, and weak compliance with anti-money laundering and counter-terrorism financing regulations within the BDC segment.
A senior official of the Association of Bureau De Change Operators of Nigeria (ABCON) explained that the sector is often viewed as highly risky due to perceived compliance gaps, leading the regulator to prefer fewer, more controllable channels particularly through commercial banks.
Licensed forex trader Umar Barkinzuwo echoed this view, stating that authorities are prioritising tighter control and better monitoring of FX flows by routing transactions mainly through the banking system, where oversight is more centralized and effective.
BDC operators have consistently argued that their exclusion from the official market limits liquidity at the retail end, thereby sustaining pressure on the parallel market and contributing to exchange rate volatility. They believe that properly regulated BDCs can play a vital role in bridging the gap between official and retail forex demand.
The restrictions date back to July 2021 when the CBN halted forex sales to BDCs over allegations of facilitating illicit financial flows. Although limited access was briefly restored in February 2024 and again in February 2026 — when BDCs were allowed to purchase up to $150,000 weekly — operators complain that actual access remains highly constrained and inconsistent.
In December 2024, the CBN granted temporary access, allowing BDCs to buy up to $25,000 weekly from the Nigerian Foreign Exchange Market (NFEM) to meet seasonal demand, with a maximum 1% spread on retail sales. However, many operators say this window has not been sufficient to meaningfully ease retail FX shortages.
The CBN maintains that its current strategy is necessary to reduce leakages, improve transparency, and ensure better tracking of foreign exchange in the economy.
Analysts note that while BDC operators have introduced reforms such as automation, compliance training, and self-regulation to address regulatory concerns, the apex bank remains wary and is unlikely to fully open the official window to the sector in the near term.
The ongoing restrictions highlight the delicate balance the CBN is trying to strike between expanding forex liquidity and maintaining strong regulatory oversight in Nigeria’s foreign exchange market.
