Nigeria's retail foreign exchange market risks suffering a significant distribution gap if regulatory reforms continue to strain Bureau De Change operators, the Association of Bureaux De Change Operators of Nigeria has warned. ABCON President Aminu Gwadabe called on the Central Bank of Nigeria to address challenges facing operators and ensure the BDC industry remains commercially viable while implementing reforms.
Gwadabe said the survival of the BDC sub-sector was critical to maintaining access to foreign exchange for travellers, small businesses and other legitimate retail users who cannot be adequately served through conventional banking channels. Although ABCON supports the CBN's efforts to improve regulation, transparency and stability in the foreign exchange market, Gwadabe argued that reforms should not undermine the operations of legitimate currency dealers. He described the industry as representing private investment, employment and entrepreneurial capacity, with its role in retail FX distribution complementing rather than competing with the banking system.
The warning comes as the CBN restructures the BDC market through tighter licensing, capitalisation and compliance requirements. Gwadabe identified five priority areas for regulatory intervention, including accelerating pending licensing applications and introducing clear timelines for processing them. He also called for solutions to recapitalisation and compliance challenges, as well as effective implementation of licensed BDC operators' access to the Nigerian Foreign Exchange Market.
Additional demands from ABCON include regular consultations between the CBN and the association, a structured dispute-resolution mechanism and a predictable regulatory framework that protects legitimate investments and encourages long-term participation. Gwadabe said regulatory consolidation should be accompanied by measures to strengthen operators and enable them to meet new requirements without losing their investments. He stressed that sustainability of the BDC sub-sector should form part of broader foreign exchange reform objectives, stating: "Nigeria needs a stronger BDC industry, not a disappearing one."