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Bureau de Change (BDC) operators in Nigeria are groaning that their businesses are on life support as the Central Bank of Nigeria’s (CBN) foreign exchange reforms tighten the screws on their operations through various reforms meant to sanitise the foreign exchange ecosystem.
The operators said they are barely surviving, struggling to meet staff salaries, office rent, licenses and other overheads while access to foreign exchange from official windows remains blocked.
“The situation has been extremely tough. Most operators are just managing to stay afloat. Since the CBN stopped selling forex directly to us, our operations have been badly affected. We used to depend on the official window for regulated foreign exchange, but that avenue has been shut for a long time. Survival now depends on what we can get from walk-in customers, but that’s not structured or steady. Sometimes, you go days without a single serious transaction. Demand has dropped sharply because most people prefer online transfers or International Money Transfer Operators instead of cash exchanges”, Abubakar Ardo, a BDC operator, told Nairametrics.
Ardo added that the income decline has forced many operators to temporarily close shops or cut staff.
“Meeting overhead costs has become a major challenge. Office rent, staff salaries, licenses, and compliance expenses are still there, but the income isn’t coming in as before.”
Aminu Gwadebe, President of the Association of Bureau de Change Operators of Nigeria (ABCON), said the majority of members are teetering on the brink. “Our operations are near extinction. The BDCs have always been the most potent tool for the CBN’s foreign exchange policy, yet survival now depends on access to the official forex market, which is largely closed to us. Only a few are grappling with dislocated walk-in customers,” he said. “We remain engaged in positive discussions with the apex bank for the return of active participation in the retail end of the FX market.”
The BDC sector has faced repeated policy shifts. After the June 2023 unification of all forex windows, the role of BDCs in the retail market has been significantly reduced. Though the CBN briefly resumed forex sales in February 2024 for compliant operators, the allocations have since stopped, leaving many BDCs struggling.
Operators have long urged the CBN to integrate them fully into the retail forex market, including access to banks’ autonomous windows and international money transfer channels, and reinstatement of 2015 guidelines that allowed them to provide liquidity effectively.
“The market is stable, and we commend policies that strengthen the naira,” Gwadebe said. “But our operations are comatose. BDCs need full reintegration to survive and continue supporting the retail forex market.”
Many BDC operators are under significant financial strain. The CBN’s recapitalisation requirements, which mandate Tier-1 operators to have N2 billion and Tier-2 operators N500 million, have left over 90% of BDCs struggling to meet these thresholds.
More so, the CBN has implemented various reforms, including adjustments to FX sales mechanisms and operational guidelines for BDCs, aiming to stabilise the FX market.
