The Association of Bureaux De Change Operators of Nigeria (ABCON) has warned that ongoing regulatory reforms by the Central Bank of Nigeria (CBN) could weaken the retail foreign exchange market if Bureau De Change operators are unable to remain commercially viable.
The association argued that the survival of the sub-sector is important to maintaining access to foreign exchange for travelers, small businesses and other legitimate retail users who rely on BDCs for currency transactions.
ABCON President, Aminu Gwadabe, raised the concern in a statement, urging the CBN to address operational challenges facing operators and create conditions that would support a sustainable BDC industry.
Although the association supports the CBN’s efforts to strengthen regulation, transparency and stability in the foreign exchange market, Gwadabe said the reforms should not undermine legitimate currency dealers or eliminate their role in retail FX distribution.
He described the industry as a source of private investment, employment and entrepreneurial activity, arguing that BDC operators should complement the banking system rather than compete with it.
The warning comes as the CBN restructures the BDC market through tighter licensing, capitalisation and compliance requirements.
Gwadabe said regulatory consolidation should be accompanied by measures that enable existing and prospective operators to meet the new requirements without losing their investments.
He identified five priority areas requiring intervention by the regulator.
These include accelerating the processing of pending licensing applications and establishing clear timelines to reduce uncertainty for operators seeking regulatory approval.
The association also called for solutions to recapitalisation and compliance challenges, particularly as operators adjust to the revised regulatory framework.
Another major demand is the effective implementation of licensed BDC operators’ access to the Nigerian Foreign Exchange Market.
ABCON maintained that a functioning network of licensed BDCs would help distribute foreign exchange to retail users who may not be adequately served through conventional banking channels.
Travelers requiring foreign currency for permitted international transactions and small businesses with legitimate retail FX needs are among the users the association says depend on the sub-sector.
The association argued that weakening the network without providing adequate alternative distribution channels could create difficulties for these customers and reduce access to regulated retail currency services.
Gwadabe said ABCON remains committed to professionalism, transparency and regulatory compliance, but stressed that the sustainability of operators should be considered alongside the broader objectives of foreign exchange reforms.
“Nigeria needs a stronger BDC industry, not a disappearing one,” he said.
The association’s position places the focus on how the CBN can balance tighter oversight with the continued participation of licensed operators.
The outcome will shape the structure of Nigeria’s retail FX market and the channels through which individuals and small businesses access foreign currency.
ABCON said such access is necessary to ensure that legitimate operators could obtain foreign exchange through recognised channels and serve retail customers.
The association further requested regular consultations between the CBN and industry representatives, alongside a structured dispute-resolution mechanism for addressing disagreements between operators and the regulator.
It also wants a predictable regulatory framework that protects legitimate investments and encourages long-term participation in the market.