Licensed Bureau De Change (BDC) operators across Nigeria are facing an unprecedented crisis following the Central Bank of Nigeria’s (CBN) continued suspension of dollar allocations to the sector, leaving traders starved of foreign exchange from official channels and struggling to remain in business.
Operators say the prolonged halt in dollar sales by the apex bank has crippled their operations, forcing many to downsize staff, shut offices, or depend on expensive funds from the parallel market to meet customer demands. The Association of Bureau De Change Operators of Nigeria (ABCON) warned that without urgent intervention, hundreds of licensed BDCs could collapse before the end of the year.
ABCON President, Aminu Gwadabe, said the CBN’s decision, initially intended to sanitize the forex market, has instead created liquidity challenges that are stifling legitimate operators while fueling unregulated parallel trading.
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“The suspension has pushed most of our members to the brink. Many cannot meet operational costs, pay rent, or renew their licenses. The official window remains shut to us, and access to forex has become nearly impossible,” he said.
The CBN stopped direct dollar sales to BDCs in 2021, citing irregularities and speculative behavior. However, while the apex bank has since implemented several reforms in the forex market—including unifying exchange rates and introducing the Nigerian Autonomous Foreign Exchange Market (NAFEM)—BDC operators remain excluded from official allocations.
Traders say this exclusion has worsened dollar scarcity on the streets, increased volatility in exchange rates, and weakened confidence in the retail forex segment. The naira, which briefly strengthened after recent CBN interventions, has again come under pressure, with parallel market rates exceeding ₦1,500 per dollar in parts of Lagos and Abuja.
Economic analysts warn that the collapse of BDCs could further distort Nigeria’s foreign exchange ecosystem, given their historical role in serving retail customers, travelers, and small businesses. They urged the CBN to reintegrate licensed operators under a stricter compliance framework rather than allow the market to be dominated by unregulated players.
Gwadabe appealed to the government to reconsider the policy, noting that BDCs remain vital for exchange rate stability and financial inclusion. “We are law-abiding institutions, not speculators. With proper regulation and digital monitoring, BDCs can complement the CBN’s efforts to achieve a stable and transparent forex market,” he added.