BDC Operators Face Dollar Scarcity Amid CBN Forex Reforms

The President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadebe, has decried the escalating hardship facing Bureau De Change (BDC) operators amid the Central Bank of Nigeria’s (CBN) ongoing foreign exchange reforms. Since the CBN suspended dollar sales to BDCs, operators have been forced to depend solely on walk-in customers to source dollars, severely limiting their liquidity and operational capacity. Gwadebe expressed hope that once reforms are completed, dollar access will improve, but survival remains challenging as the operators are currently cut off from key sources such as oil companies and domiciliary accounts.

Earlier in 2025, the CBN introduced a cap restricting BDCs to purchasing a maximum of $25,000 per week from a single authorized dealer bank to enhance transparency and regulate the FX market. However, the suspension of dollar sales has rendered this ineffective, worsening dollar scarcity for BDC operators. In addition, the apex bank has mandated a strict recapitalization framework requiring Tier-1 BDCs to raise at least ₦2 billion and Tier-2 operators ₦500 million, along with reapplication for licenses with non-refundable fees. Though the initial compliance deadline expired in December 2024, it was extended to June 2025 and further to December 2025 to accommodate compliance efforts. Many operators are partnering and merging to meet these capital demands and avoid being pushed out of business.

The scarcity of dollars at BDCs is occurring amid broader positive developments for Nigeria’s currency. The naira has shown signs of stability and appreciation, buoyed by Nigeria’s recent exit from the Financial Action Task Force (FATF) grey list after successfully addressing anti-money laundering and counterterrorism financing deficiencies. This exit has increased investor confidence and improved foreign transaction volumes. Additionally, increased oil production and security in the Niger Delta have supported economic fundamentals. Despite these macro gains, the restriction on dollar supply to BDCs continues to strain daily forex operations in the retail sector.

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Industry stakeholders warn the suspension of dollar allocation to BDCs could threaten the retail FX market’s inclusiveness and liquidity. Experts suggest the CBN should consider easing restrictions and leveraging BDCs more effectively to maintain dollar availability and support market stability. Meanwhile, operators continue to navigate regulatory changes amid dollar scarcity, hoping for timely implementation of reforms to restore healthier liquidity flows in the FX segment.