NEWS
BDC Operators Warn CBN Reforms Could Disrupt Retail FX Distribution
BDC Operators Warn CBN Reforms Could Disrupt Retail FX Distribution
ABCON says weakening Bureau De Change operators could create gaps in foreign exchange access for travellers, small businesses and other retail users.
The association wants the CBN to accelerate pending licence applications, address recapitalisation challenges and ensure licensed operators can access the Nigerian Foreign Exchange Market.
Operators are also seeking clearer regulatory timelines, regular consultations and a structured dispute-resolution framework.
November 10, () – The Association of Bureaux De Change Operators of Nigeria has warned that ongoing regulatory reforms could weaken the retail foreign exchange market if Bureau De Change operators are unable to remain commercially viable.
The association said the survival of the sub-sector was important to maintaining access to foreign exchange for travellers, small businesses and other legitimate retail users who rely on BDCs for currency transactions.
ABCON President, Aminu Gwadabe, raised the concern in a statement on Monday, urging the Central Bank of Nigeria to address operational challenges facing operators and create conditions that would support a sustainable BDC industry.
Although the association supports the CBN’s efforts to strengthen regulation, transparency and stability in the foreign exchange market, Gwadabe said the reforms should not undermine legitimate currency dealers or eliminate their role in retail FX distribution.
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He described the industry as a source of private investment, employment and entrepreneurial activity, arguing that BDC operators should complement the banking system rather than compete with it.
ABCON President Aminu Gwadabe Photo credit ICIR
ABCON seeks relief on licensing and recapitalisation
Channel
The warning comes as the CBN restructures the BDC market through tighter licensing, capitalisation and compliance requirements.
Gwadabe said regulatory consolidation should be accompanied by measures that enable existing and prospective operators to meet the new requirements without losing their investments.
He identified five priority areas requiring intervention by the regulator.
These include accelerating the processing of pending licensing applications and establishing clear timelines to reduce uncertainty for operators seeking regulatory approval.
The association also called for solutions to recapitalisation and compliance challenges, particularly as operators adjust to the revised regulatory framework.
Another major demand is the effective implementation of licensed BDC operators’ access to the Nigerian Foreign Exchange Market.
ABCON said such access was necessary to ensure that legitimate operators could obtain foreign exchange through recognised channels and serve retail customers.
The association further requested regular consultations between the CBN and industry representatives, alongside a structured dispute-resolution mechanism for addressing disagreements between operators and the regulator.
It also wants a predictable regulatory framework that protects legitimate investments and encourages long-term participation in the market.
Operators warn against weakening retail FX network
ABCON maintained that a functioning network of licensed BDCs would help distribute foreign exchange to retail users who may not be adequately served through conventional banking channels.
Travellers requiring foreign currency for permitted international transactions and small businesses with legitimate retail FX needs are among the users the association says depend on the sub-sector.
The association argued that weakening the network without providing adequate alternative distribution channels could create difficulties for these customers and reduce access to regulated retail currency services.
Gwadabe said ABCON remained committed to professionalism, transparency and regulatory compliance, but stressed that the sustainability of operators should be considered alongside the broader objectives of foreign exchange reforms.
“Nigeria needs a stronger BDC industry, not a disappearing one,” he said.
The association’s position places the focus on how the CBN can balance tighter oversight with the continued participation of licensed operators.
The outcome will shape the structure of Nigeria’s retail FX market and the channels through which individuals and small businesses access foreign currency.
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