CBN Keeps BDCs Out of Official FX Market Over Compliance Concerns – Traders

Lagos, Nigeria – The Central Bank of Nigeria (CBN) has continued to restrict Bureau De Change (BDC) operators from fully accessing the official foreign exchange market, citing concerns over compliance and past irregularities, forex traders said on Tuesday.

According to industry sources, the apex bank’s cautious approach is largely driven by perceived risks around anti-money laundering (AML) and counter-terrorism financing (CTF) compliance within the sector.

A senior official of the Association of Bureau De Change Operators of Nigeria (ABCON) explained that regulators still view the BDC segment as high-risk. This perception, the official said, has led the CBN to favour tighter control through fewer channels, with a strong preference for bank-led foreign exchange transactions.

Another licensed forex trader, Umar Barkinzuwo, noted that authorities remain wary due to past market abuses and concerns about effective oversight. He said the CBN prefers routing forex through the banking system, where monitoring is more centralized and easier to enforce.

He added that issues such as arbitrage and round-tripping continue to influence the regulator’s reluctance to fully reintegrate BDCs into the official market.

Market participants argue that sidelining BDCs reduces liquidity at the retail level and keeps pressure on the parallel market. Calls for their inclusion have grown louder since the unification of Nigeria’s foreign exchange system in June 2023.

The CBN had stopped selling forex to BDCs in July 2021, accusing operators of enabling illicit financial flows. Although sales briefly resumed in February 2024 following the revocation of over 4,000 licences, the arrangement was later halted again.

In February 2026, the bank introduced a limited window allowing BDCs to access up to $150,000 weekly. However, operators say actual access remains heavily restricted.