The Central Bank of Nigeria has maintained restrictions on Bureau De Change (BDC) operators’ access to the official foreign exchange market, citing compliance risks, past abuses, and the need for tighter regulatory control, even as the naira appreciated slightly in the parallel market.
Insights from forex traders and market operators indicate that the apex bank continues to favour a bank-led foreign exchange distribution system, driven by concerns over transparency, anti-money laundering compliance, and the risk of arbitrage and round-tripping within the BDC segment.
A senior official of the Association of Bureau De Change Operators of Nigeria (ABCON) noted that the sector is widely perceived as high-risk due to compliance gaps related to anti-money laundering and terrorism financing, which has influenced the CBN’s preference for fewer, more controllable channels of FX distribution.
Another forex trader, Umar Barkinzuwo, explained that the regulator’s cautious stance is rooted in past market abuses and a desire to centralise oversight through the banking system to reduce leakages and improve monitoring of foreign exchange flows.
BDC operators, however, have continued to push for greater inclusion in the FX market, arguing that their exclusion limits liquidity at the retail end and sustains pressure on the parallel market. They insist that broader participation would enhance stability and support ongoing reforms.
The tensions date back to July 2021, when the CBN halted forex sales to BDCs over allegations of illicit financial flows and money laundering. Although limited access was briefly restored in February 2024 after the revocation of over 4,000 licences, and again in February 2026 with a weekly cap of $150,000, operators say access remains constrained.
Analysts note that while BDCs have introduced reforms such as automation, compliance training, and self-regulation, the apex bank’s stance reflects deeper concerns about transparency, accountability, and effective control of the FX market.
Meanwhile, the naira appreciated to ₦1,390 per dollar in the parallel market on Tuesday, up from ₦1,392 recorded on Monday.
However, in the Nigerian Foreign Exchange Market (NFEM), the currency weakened to ₦1,383 per dollar from ₦1,369, indicating a ₦14 depreciation.
As a result, the gap between the parallel and official markets narrowed significantly to ₦7 per dollar from ₦23 the previous day.
Market data also showed increased activity in the interbank FX segment, with turnover rising by 28.8 percent to $98.8 million, compared to $76.7 million recorded earlier.