Foreign exchange: BDC Operators Warn CBN Against Pushing Currency Dealers Out
- Bureau De Change operators sounded the alarm over CBN regulatory changes they say could push legitimate currency dealers out of the market
- ABCON President Aminu Gwadabe raised the concerns in a statement on Monday, November 10, calling on the CBN to act on five key problem areas
- The association flagged licensing delays, recapitalisation hurdles and restricted access to the official FX market as urgent issues requiring CBN attention
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Bureau De Change (BDC) operators have raised concerns that the Central Bank of Nigeria's (CBN) ongoing reform programme could undermine the survival of licensed currency dealers and weaken foreign exchange access across the country.
The Association of Bureaux De Change Operators of Nigeria (ABCON) made the warning in a statement released on Monday, November 10, cautioning that shrinking the BDC industry would leave travellers, small businesses and individuals with fewer channels to obtain foreign currencies.
Source: UGC
ABCON President Aminu Gwadabe said the reforms, which include stricter licensing conditions, higher capital requirements and tighter compliance rules, should not come at the cost of pushing legitimate operators out of business.
He acknowledged the need for greater transparency and stability in the foreign exchange market but argued that reform objectives and industry sustainability are not mutually exclusive.
Gwadabe described BDCs as a vital retail distribution layer in Nigeria's foreign exchange system, one that serves customers whose currency needs fall outside what conventional banking channels typically cover.
He added that the sector also supports private investment, employment and entrepreneurial activity.
ABCON's five demands to the CBN
The association outlined five specific areas where it wants the CBN to act. At the top of the list is the need to clear the backlog of pending licence applications and set transparent timelines for processing them.
ABCON also called on the apex bank to offer workable solutions for operators struggling with recapitalisation and compliance as they adjust to the new rules.
A third demand is that licensed operators be given effective access to the Nigerian Foreign Exchange Market (NFEM), a channel that many have reportedly been unable to tap into.
Source: Getty Images
The association further requested regular dialogue between the CBN and industry representatives, as well as a formal process for resolving disputes between regulators and operators.
It said a stable and predictable regulatory environment would protect existing investments and give operators the confidence to commit more resources to the sector.
Why ABCON says the industry must not be left to decline
Gwadabe warned that if the challenges facing operators are not addressed, the number of active BDCs could fall significantly, reducing the supply of foreign exchange available for routine retail transactions.
He said the association remains committed to professionalism and regulatory compliance but maintained that the CBN must weigh its reform goals against the broader consequences for the industry.
He said:
"Nigeria needs a stronger BDC industry, not a disappearing one."
Court convicts 2 BDC operators
Earlier, Legit.ng reported that a Federal High Court in Abuja has sentenced two Bureau De Change operators to five years in prison each for running BDC businesses without a valid licence from the Central Bank of Nigeria.
Justice Obiora Egwuatu handed down the sentences on Monday in two separate cases brought by the Economic and Financial Crimes Commission (EFCC).
The prosecutor in both cases was T.M. Anamaeze.
Source: Legit.ng
