Nigeria’s foreign exchange market is facing renewed tension as the Central Bank of Nigeria (CBN) moves to further restrict Bureau De Change (BDC) operators over lingering compliance concerns.
The latest development has triggered reactions from traders, who say access to the official forex window remains limited despite earlier policy adjustments.Read more
In recent months, the apex bank had allowed BDCs to buy up to $150,000 weekly under strict conditions. But operators now report that actual access is still tight, raising concerns about supply gaps in the retail forex segment.
Some traders warned that the restrictions could push more demand into informal channels, increasing pressure on the parallel market.
“Banks are not meeting retail demand efficiently, and that gap is widening,” a trader said, pointing to growing reliance on unofficial sources.
The situation reflects a broader pattern. The CBN has repeatedly adjusted its stance on BDCs over the years, citing issues such as money laundering risks, weak reporting standards, and lack of transparency.
In 2021, the regulator stopped direct forex sales to BDCs, accusing some operators of facilitating illicit flows. Since then, access has been restored in phases but under tighter rules and monitoring.
Operators insist they have responded with reforms, including automation, compliance training, and stricter internal controls. Still, analysts say the central bank remains cautious.
According to market watchers, the policy signals a balancing act—boosting liquidity while maintaining oversight in a volatile currency environment.
For now, traders say uncertainty remains.
“We’ve made improvements, but restrictions are still there,” another operator noted, highlighting the ongoing friction between regulation and market demand.
As the naira continues to face pressure, attention is shifting to how the CBN will manage retail forex access without fueling instability in the wider market.