Nigeria Risks Losing Retail FX Channel, BDC Operators Warn
The Association of Bureaux De Change Operators of Nigeria (ABCON) has warned that Nigeria risks losing a critical retail foreign exchange distribution channel if ongoing reforms weaken the Bureau De Change (BDC) sub-sector.
In a statement issued on Monday, ABCON President, Dr Aminu Gwadabe, said the industry’s challenges required urgent attention to ensure its sustainability.
Gwadabe said although the association supported the Central Bank of Nigeria’s (CBN) efforts to strengthen regulation, improve transparency and stabilise the foreign exchange market, the industry needed urgent attention to remain sustainable.
He said the BDC industry represented private investment, employment and entrepreneurial capacity, and provided retail foreign exchange services to travellers, small businesses and other legitimate users.
According to him, Nigeria’s foreign exchange reforms should move beyond regulatory consolidation to building a sustainable, adequately capitalised and commercially viable BDC industry.
He stressed that regulatory reforms should strengthen legitimate operators rather than progressively exclude them, noting that a functional BDC industry would complement the banking system and support retail foreign exchange distribution.
Gwadabe identified five priority areas requiring CBN intervention, including the acceleration of pending licensing applications and the provision of transparent approval timelines..
He also called for measures to address practical recapitalisation and compliance challenges, as well as effective implementation of licensed BDC operators’ access to the Nigerian Foreign Exchange Market (NFEM).
Other demands include regular consultations between the CBN and ABCON, the establishment of a structured dispute-resolution mechanism, and a sustainable regulatory environment that will protect legitimate investments and encourage long-term participation.
He said the association remained committed to professionalism, transparency and regulatory compliance, as well as the CBN’s broader foreign exchange reform objectives.
However, he emphasised that the survival of the BDC sub-sector should be recognised as an important component of the success of the reforms. “Nigeria needs a stronger BDC industry, not a disappearing one,” he said. #Nigeria Risks Losing Retail FX Channel, BDC Operators Warn# CBN Orders Banks to Freeze Assets of Individuals, BDCs Linked with Terrorism Financing
