ABCON gives CBN five demands to save BDC industry

Bureau De Change operators have asked the Central Bank of Nigeria to act on five issues they say could decide the survival of licensed currency dealers. The Association of Bureaux De Change Operators of Nigeria raised the concerns in a statement on Monday, November 10.

ABCON President Aminu Gwadabe said the CBN's reform programme, which includes stricter licensing conditions, higher capital requirements and tighter compliance rules, should not push legitimate operators out of business. He said reform and industry sustainability can coexist.

What operators want

ABCON listed five demands for the CBN. First, clear the backlog of pending licence applications and set transparent timelines for processing them. Second, offer workable solutions for operators struggling with recapitalisation and compliance as they adjust to the new rules. Third, give licensed operators effective access to the Nigerian Foreign Exchange Market, or NFEM, a channel many have reportedly been unable to use.

Fourth, the association wants regular dialogue between the CBN and industry representatives. Fifth, it asked for a formal process to resolve disputes between regulators and operators.

Why the BDC layer matters

Gwadabe described BDCs as a vital retail distribution layer in Nigeria's foreign exchange system. He said they serve customers whose currency needs fall outside what conventional banking channels typically cover. The sector also supports private investment, employment and entrepreneurial activity, he said.

ABCON warned that shrinking the BDC industry would leave travellers, small businesses and individuals with fewer channels to obtain foreign currencies. It said a stable and predictable regulatory environment would protect existing investments and give operators confidence to commit more resources.

Gwadabe warned that if the challenges are not addressed, the number of active BDCs could fall significantly. That would reduce the supply of foreign exchange available for routine retail transactions.

He said the association remains committed to professionalism and regulatory compliance. But he insisted the CBN must weigh its reform goals against the broader consequences for the industry.

He said: 'Nigeria needs a stronger BDC industry, not a disappearing one.'

Court jails two unlicensed operators

Separately, a Federal High Court in Abuja sentenced two Bureau De Change operators to five years in prison each for running BDC businesses without a valid licence from the CBN. Justice Obiora Egwuatu handed down the sentences on Monday in two separate cases brought by the Economic and Financial Crimes Commission. The prosecutor in both cases was T.M. Anamaeze.

For the naira and retail FX users, the signal is clear. The CBN is tightening rules, but operators say the market needs licensed dealers that can still serve small currency needs without disruption.