Bureau De Change (BDC) operators across Nigeria are struggling to keep their businesses afloat as the Central Bank of Nigeria (CBN) suspends dollar allocations to licensed currency traders. With access to the official foreign exchange (FX) window blocked, many operators are finding it increasingly difficult to cover operational costs such as staff salaries, office rent, licenses, and regulatory compliance fees.
The challenges come amid a broader shift in the forex market. Many Nigerians now prefer international money transfer operators (IMTOs) and online platforms over traditional cash exchanges, further reducing the BDCs’ revenue. “Survival depends mostly on what we can get from walk-in customers, but transactions are irregular and unpredictable,” said Abubakar Ardo, a BDC operator. “The market is very dislocated, and demand has dropped sharply.”
The BDC operators’ plight traces back to CBN policies over the past few years. In July 2021, the apex bank stopped selling forex to BDCs, citing concerns about money laundering and illicit financial flows. While the CBN briefly resumed allocations in February 2024, many operators continue to operate under strained conditions, with limited intervention from the regulator to restore their full access to forex.
Aminu Gwadebe, President of the Association of Bureau De Change Operators of Nigeria (ABCON), warned that the sector is on the brink of extinction. “Our operations are near collapse, and many members are struggling to meet overhead costs,” he said. Gwadebe emphasized the BDCs’ crucial role in the retail forex market, noting that the apex bank’s policies rely on the sector to transmit its FX policy effectively.
BDC operators continue to appeal to the CBN for reintegration into the official forex market, urging the bank to leverage the 2015 policy guidelines that allow BDCs to access commercial banks’ autonomous windows and act as agents for diaspora remittances. Traders argue that full participation in the retail FX market could stabilize their operations while supporting the central bank’s goal of strengthening the naira and improving market liquidity.
source: Nairametrics