The Central Bank of Nigeria (CBN) has continued to restrict Bureau De Change (BDC) operators’ access to the official foreign exchange market, citing compliance risks and past abuses, according to traders and market operators.
The move underscores the regulator’s preference for a bank-led foreign exchange distribution system, as it seeks tighter control over FX flows and improved market oversight.
Operators say the CBN’s cautious stance is driven by concerns around anti-money laundering (AML) and terrorism financing risks within the BDC segment.
An official of the Association of Bureau De Change Operators of Nigeria noted that the sector is often viewed as high-risk, prompting the apex bank to limit its role and rely more on banks for FX intermediation.
Another trader said authorities are wary of practices such as arbitrage and round-tripping, which have historically distorted the market.
BDC operators argue that excluding them from the official market reduces liquidity at the retail end and sustains pressure on the parallel market.
They say their participation could help stabilise exchange rates, especially following the 2023 unification of Nigeria’s FX market.
However, the CBN has maintained a cautious approach. After halting FX sales to BDCs in 2021 over allegations of illicit flows, the bank briefly resumed limited access in 2024 before tightening controls again.
In February 2026, BDCs were allowed restricted access of up to $150,000 weekly, but operators say actual availability remains constrained.
Traders warn that banks do not always efficiently meet retail FX demand, leaving gaps that informal channels quickly fill, fueling volatility in the parallel market.
Despite reforms by BDC operators, including improved compliance systems and automation, analysts say deeper concerns around transparency and regulatory control continue to shape policy.
For now, the CBN appears focused on balancing liquidity with stricter oversight, even as pressure mounts for broader inclusion of BDCs in the official FX market.
