The Central Bank of Nigeria (CBN) has issued final operating licenses to 82 Bureau-De-Change (BDC) operators, marking a major milestone in the country’s ongoing foreign exchange (FX) market reforms. The move underscores the regulator’s determination to overhaul Nigeria’s retail forex segment, curb illicit currency trading, and restore confidence in the broader FX ecosystem.
The newly licensed operators emerged from a rigorous screening process conducted under the CBN’s revised regulatory and supervisory framework for BDCs. According to the apex bank, only firms that met the new capital requirements, corporate governance standards, and compliance obligations were granted approval. The sharp reduction in the number of licensed operators reflects a deliberate shift away from the previously fragmented and loosely regulated BDC landscape that had long raised concerns among policymakers and market participants.
For years, Nigeria’s FX market has struggled with transparency challenges, speculative trading, and a persistent gap between official and parallel market exchange rates. BDCs, originally established to meet legitimate retail FX needs such as travel allowances, medical expenses, and small business transactions, gradually became associated with market distortions, regulatory breaches, and allegations of round-tripping and hoarding. The latest licensing round is designed to reset the system and redefine the role of BDCs within a more controlled and transparent framework.
Under the updated guidelines, licensed BDCs are expected to operate within clearly defined transaction limits, maintain stronger anti-money laundering (AML) and know-your-customer (KYC) controls, and submit regular transaction reports to the CBN. The regulator has also issued a strong warning to the public to avoid transacting with unlicensed operators, stressing that only firms listed on its official register are legally permitted to provide BDC services.
Industry analysts view the decision as part of a broader FX reform agenda that includes exchange rate unification, improved price discovery, and tighter oversight of market participants. By drastically reducing the number of licensed operators, the CBN aims to improve monitoring, reduce arbitrage opportunities, and limit the influence of speculative actors in the retail FX market. The move is also expected to strengthen coordination between the BDC segment and other components of the formal FX market.
While the policy shift has been welcomed by some stakeholders as a necessary cleanup, it has also raised concerns around accessibility and competition. Critics argue that licensing only 82 operators nationwide could create short-term supply constraints, particularly in major commercial centers with high FX demand. However, the CBN has indicated that additional licensing rounds may be considered in the future, provided applicants meet the required regulatory thresholds.
For small and medium-sized enterprises (SMEs) and individual consumers, the reforms are expected to bring greater clarity and safety to FX transactions. A more transparent and regulated BDC segment could help reduce exposure to fraud, stabilize pricing, and rebuild confidence in formal FX channels.
The licensing of 82 BDCs represents a trivial step in Nigeria’s efforts to rebuild trust in its foreign exchange market. The long-term success of the reforms will depend on consistent enforcement, market discipline, and the CBN’s willingness to adjust the framework as economic conditions evolve.
