CBN Maintains Restrictions on BDC Access to FX Market

The Central Bank of Nigeria (CBN) has maintained restrictions on Bureau De Change (BDC) operators’ access to the official foreign exchange market, citing compliance risks and past abuses.

According to traders, the apex bank prefers bank-led FX distribution to ensure tighter oversight and reduce leakages.

Concerns about arbitrage, round-tripping, and money laundering continue to shape the regulator’s cautious stance.

A top official of the Association of Bureau De Change Operators of Nigeria (ABCON) said: “The characterization of weak compliance measures ranks the sector highly risky, resulting in CBN preference for fewer channels and bank-led intermediation.”

Licensed trader Umar Barkinzuwo added: “Authorities have preferred to channel foreign exchange through the banking system, where oversight is more centralized.”

BDC operators argue that excluding them limits liquidity at the retail end of the market and sustains pressure on the parallel market.

They insist that full participation would help stabilise exchange rates.

The restrictions follow years of tension. In July 2021, the CBN halted forex sales to BDCs, accusing them of facilitating illicit flows.

Although sales briefly resumed in February 2024 after over 4,000 licences were revoked, the arrangement was later discontinued.

In February 2026, the CBN allowed limited participation, granting BDCs access to $150,000 weekly, but operators say access remains constrained.

They warn that banks often fail to meet retail demand, leaving gaps filled by informal channels.

Despite reforms such as automation and compliance training, analysts say the restrictions reflect deeper concerns about transparency and control, showing the CBN’s reluctance to fully integrate BDCs into the official FX system.