Bureau De Change (BDC) operators across Nigeria are warning of an imminent industry collapse as prolonged foreign exchange shortages and regulatory pressures continue to cripple their operations.

The licensed currency traders say that many of their members are now struggling to stay in business, citing the suspension of dollar allocations by the Central Bank of Nigeria (CBN) as the primary cause of the sector’s worsening crisis. Without regular access to foreign exchange from the official market, operators report being unable to sustain their businesses or meet essential financial obligations.

According to multiple sources within the Association of Bureau De Change Operators of Nigeria (ABCON), income levels have dropped drastically since the CBN halted dollar sales to BDCs, leaving them to source foreign currency through alternative — often more expensive — channels.

“Most operators are barely surviving,” one BDC owner in Lagos said. “The cost of maintaining an office, paying staff, renewing licenses, and meeting regulatory compliance has become unbearable without official forex allocation.”

The crisis has also been exacerbated by ongoing uncertainty in the retail sub-sector of the foreign exchange market, where many BDCs are still struggling to meet new recapitalization requirements and complete license renewals demanded by the apex bank.

Impact of CBN’s FX Unification Policy

The current strain traces back to June 2023, when the CBN announced the unification of all segments of Nigeria’s foreign exchange market, effectively merging multiple FX windows into a single platform. The move, aimed at improving market transparency and liquidity, resulted in the withdrawal of direct forex sales to Bureau De Change operators.

While the reform was applauded by international investors and financial institutions for simplifying Nigeria’s forex structure, it also had unintended consequences for small and medium-scale currency traders who had previously relied on CBN dollar sales to meet retail market demand.

Since the policy shift, the naira has faced continuous volatility, and many BDCs which historically served as a bridge between official and retail forex users have been largely sidelined.

Calls for Inclusion and Market Stability

BDC operators have repeatedly appealed to the CBN for increased participation in the official FX ecosystem, arguing that their inclusion could help enhance liquidity, curb black-market speculation, and ensure broader access to forex for legitimate end-users.

They maintain that with improved oversight and collaboration, the BDC sub-sector can complement the apex bank’s policy goals rather than undermine them.

“The exclusion of licensed BDCs has created a vacuum in the retail forex market,” another operator noted. “If properly regulated and integrated, we can help stabilize rates and improve confidence in the system.”

Mounting Financial Pressure

The financial implications of the ongoing restrictions are severe. Operators say declining income has made it increasingly difficult to pay staff salaries, office rent, regulatory fees, and compliance costs. Industry insiders warn that if the situation persists, hundreds of small-scale operators could shut down permanently, leading to job losses and further contraction in Nigeria’s informal financial sector.

As the Central Bank continues to pursue its broader monetary reforms, stakeholders are urging the government and financial regulators to re-engage with BDC operators to find a sustainable framework that balances market stability, transparency, and business survival.

For now, however, many in the BDC community say they are on the brink of closure caught between regulatory change and economic uncertainty in Nigeria’s turbulent forex landscape.