April 28, (THEWILL) — The Central Bank of Nigeria (CBN) has sustained restrictions on Bureau De Change (BDC) operators’ access to the official foreign exchange market, underscoring ongoing concerns about regulatory control, compliance risks, and past market abuses.
Insights from forex traders and market operators indicate that the apex bank continues to favour a bank-led FX distribution model, viewing it as a more effective way to monitor flows and curb irregularities such as arbitrage and round-tripping.
BDC operators have repeatedly voiced frustration over limited access to foreign exchange, noting that the constraints hinder their ability to meet operating costs and serve retail demand.
They argue that broader participation would boost liquidity, support policy implementation, and ease pressure on the parallel market.
However, traders say the CBN’s cautious stance is rooted in longstanding concerns about weak compliance with anti-money laundering and counter-terrorism financing rules within the segment.
This perception has led the regulator to rely on fewer, more controlled channels primarily banks for FX distribution.
Market participants also note that while banks provide centralized oversight, they often fall short in meeting retail FX needs efficiently, leaving gaps that informal markets quickly exploit.
Since halting forex sales to BDCs in 2021 over alleged illicit financial flows, the CBN has only allowed limited, conditional access.
Although temporary measures and partial reintroductions have been implemented, operators say access remains constrained.
Despite reforms such as automation and compliance training by BDCs, analysts believe the restrictions reflect deeper regulatory concerns that continue to shape the CBN’s cautious approach to integrating the sector into the official FX market.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
