The Central Bank of Nigeria (CBN) has sustained its restriction on Bureau De Change (BDC) operators’ direct access to the official foreign exchange market, reinforcing its bank-led FX framework amid ongoing concerns around compliance, transparency, and market abuse risks.
Market operators and forex traders confirmed that the apex bank continues to prioritise commercial banks as the primary channel for foreign exchange distribution. The move is aimed at strengthening oversight and reducing vulnerabilities associated with retail FX trading.
Brandspur Banking News Desk reports that the CBN’s stance is largely driven by persistent concerns over regulatory breaches, including money laundering risks, arbitrage activities, and round-tripping within the BDC segment of the market.
Stakeholders within the forex ecosystem noted that while BDC operators play a key role in retail foreign exchange distribution, the regulator remains cautious due to historical abuses in the sector. A senior official of the Association of Bureau De Change Operators of Nigeria (ABCON) stated that compliance concerns around anti-money laundering and terrorism financing have contributed to the continued exclusion of BDCs from full participation in the official FX market.
Another licensed forex operator, Umar Barkinzuwo, explained that the policy reflects the CBN’s preference for centralised oversight through the banking system, where transactions are more closely monitored and controlled to minimise leakages and speculative activities.
BDC operators have, however, consistently argued that their exclusion limits liquidity at the retail level and worsens pressure on the parallel market. They maintain that greater inclusion would improve FX availability and support exchange rate stability, especially following the 2023 FX market unification.
The CBN had previously halted forex sales to BDCs in 2021 over concerns of illicit financial flows, later reintroducing limited access in 2024 after licence reviews. In February 2026, access was again partially restored, allowing operators limited weekly FX allocations, though traders say the system remains tightly controlled and inconsistent.
Despite ongoing reforms within the BDC segment, including improved compliance structures and operational digitisation, analysts say the regulator’s cautious approach reflects deeper structural concerns around transparency and systemic risk in Nigeria’s foreign exchange market.
