Nigeria’s foreign exchange market is facing renewed tension as Bureau De Change (BDC) operators struggle to stay afloat following the Central Bank of Nigeria’s (CBN) decision to stop selling dollars directly to them. The move, which the apex bank said was aimed at curbing market abuse and speculative trading, has left thousands of licensed forex dealers battling for survival.
CBN’s Policy Shift Shakes the FX Market
In its directive, the CBN announced that it would discontinue weekly dollar allocations to BDCs and channel foreign exchange supplies strictly through commercial banks. According to the bank, the decision was part of ongoing reforms to ensure transparency, curb round-tripping, and strengthen the naira.
CBN Governor Yemi Cardoso said the measure was necessary to “restore order and integrity in the retail forex market,” noting that several BDCs had deviated from their original purpose of providing small-scale access to foreign currency.
However, the ripple effects on the ground have been far-reaching. For many operators, the policy has turned daily operations into a struggle.
Operators Count Their Losses
Many BDC operators have reported a sharp decline in business activity since the policy took effect.
Mr. Ahmed Bello, a forex trader in Lagos, shared his experience:
“Before the CBN cut us off, we got regular dollar supply and could serve customers easily. Now, we depend only on walk-in clients who bring foreign currency to sell. That’s not reliable – some days, we record no transactions at all.”
Without direct dollar access, operators say they cannot meet customer demand, pay office rent, or maintain staff. Several small BDCs have reportedly shut down or suspended operations due to losses.
Impact on the Broader Economy
The decision has affected not just traders but also everyday Nigerians who rely on BDCs for travel, school fees, and business payments abroad. Many now turn to commercial banks, which themselves face limited dollar supply, or to parallel market dealers where rates are significantly higher.
Analysts warn that the widening gap between the official and parallel market rates could further pressure the naira and fuel inflation if not properly managed.
According to the Association of Bureau De Change Operators of Nigeria (ABCON), the continued exclusion of BDCs from official dollar supply “has weakened retail market stability and increased unemployment in the sector.”
Calls for Policy Review and Dialogue
Despite the challenges, BDC operators say they support the CBN’s drive for transparency but are calling for inclusion in the reform process.
ABCON President Aminu Gwadabe has appealed to the CBN to reconsider its position and create a regulated window that allows licensed dealers to access forex under stricter supervision.
“We are not against regulation. What we ask for is a fair opportunity to operate legally within the system. Many families depend on this business,” Gwadabe said.
Looking Ahead
The CBN’s policy has underscored the tension between reform and survival in Nigeria’s forex ecosystem. While the central bank insists that the measures are vital to restore order, the reality on the ground shows that many small traders are fighting to remain in business.
Whether through new digital forex platforms, improved oversight, or a gradual reintegration of BDCs into the supply chain, stakeholders say the solution lies in a balanced approach that protects both the currency and the livelihoods of those operating within the system.
For now, thousands of forex traders across Nigeria can only hope that dialogue and reform will bring relief to a sector gasping for survival.
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