By Favour Pius
The Central Bank of Nigeria (CBN) has tightened access of Bureau De Change (BDC) operators to the foreign exchange market over mounting compliance concerns, traders have said.
Market participants disclosed that several BDCs have recently faced restrictions in accessing official forex windows, amid heightened scrutiny by the apex bank over regulatory infractions and documentation lapses.
According to operators, the move is part of efforts by the CBN to sanitise the retail end of the forex market, ensure transparency and curb speculative activities that have contributed to exchange rate volatility.
Some traders said affected BDCs have struggled to source foreign currency through official channels, forcing them to rely more heavily on the parallel market to meet customer demand.
“The restrictions are largely compliance-driven. The CBN is insisting on stricter adherence to guidelines, especially around documentation and reporting,” a Lagos-based forex dealer said.
Industry sources noted that the regulator has become increasingly cautious about the role of BDCs in the forex ecosystem, particularly following concerns over round-tripping, money laundering risks and weak oversight in parts of the segment.
The development comes amid ongoing efforts by the apex bank to stabilise the naira and improve liquidity management in the foreign exchange market.
Analysts say the clampdown could further tighten dollar supply in the informal market in the short term, potentially exerting additional pressure on the exchange rate.
However, they argue that stricter compliance enforcement may help restore credibility and attract more inflows into the formal forex market over time.
BDC operators, on their part, have called for clearer guidelines and engagement with regulators, warning that prolonged restrictions could disrupt their operations and affect small-scale retail users who depend on them for foreign exchange.
The CBN has yet to issue an official statement on the latest restrictions, but has repeatedly emphasised its commitment to strengthening regulatory oversight and ensuring that all market participants comply with established rules.
