By Charles Pemu 
Lagos, Nigeria — Licensed currency traders, known as Bureau De Change (BDC) operators, are sounding a dire warning, claiming their businesses are “near extinction” as they struggle to survive a financial crisis brought on by the Central Bank of Nigeria’s (CBN) continued suspension of dollar allocations.
The absence of foreign exchange from the official window—a situation that began in 2021 and was only briefly reversed in February 2024—has decimated the BDCs’ income streams. This has made meeting basic overheads like staff salaries, office rent, and licensing fees nearly impossible. The financial strain is compounded by the ongoing regulatory demands for recapitalization and licensing compliance.
Aminu Gwadebe, President of the Association of Bureau De Change Operators of Nigeria (ABCON), confirmed the critical state, noting that the majority of members are struggling with expenses. The industry’s survival, he explained, is largely dependent on the official market which remains inaccessible.
A BDC operator, Abubakar Ardo, reinforced the sentiment, stating that most operators are in “survival mode.” He noted that operations have been badly affected since the CBN stopped direct forex sales, forcing them to rely on small, unstructured transactions from walk-in customers.
Adding to the crisis is a significant shift in consumer behavior. The demand for physical cash foreign exchange has dropped sharply because customers are increasingly opting for online platforms and International Money Transfer Operators (IMTOs) for transfers, further sidelining the BDCs.
Despite the challenges, BDC operators are attempting to work with the apex bank, stating there is “positive discussion” ongoing for their active re-entry into the retail end of the FX market.
They insist that the BDCs remain the CBN’s “most potent tool” for currency policy transmission and should be leveraged to improve retail liquidity. They are strongly advising the CBN to grant them access to commercial banks’ autonomous window and to serve as agents for IMTOs. This push includes a request to reinstate the 2015 policy guidelines, which previously allowed BDCs to access forex from the banks’ autonomous windows and manage diaspora remittances.
The current crisis stems from the CBN’s July 2021 decision to halt dollar sales to the BDCs over allegations of money laundering and illegal financial flows. While the apex bank briefly resumed sales in early 2024 following the revocation of thousands of non-compliant BDC licenses, it could not sustain the intervention, leading to the severe operational slump now facing the entire sector.