The Association of Bureaux De Change Operators of Nigeria (ABCON) has called on the Central Bank of Nigeria (CBN) to accelerate pending BDCs’ licensing applications and provide transparent approval timelines for their operations.
In a statement relased yesterday, ABCON Execuitve Council, warned against losing critical retail FX market segment over ongoing reforms in the market.
It says although the Nigeria’s foreign exchange market is undergoing significant transformation, concerns abound over state of the bureaux de change (BDC) segement of the market.
ABCON says it suports CBN reforms, but reforms must strengthen legitimate operators rather than progressively exclude them.
It said Nigeria needs a functional BDC industry that complements the banking system, supports retail FX distribution and operates within a transparent regulatory environment.
ABCON therefore called on the CBN to accelerate pending licensing applications and provide transparent approval timelines.
It further asked the apex bank to address practical recapitalisation and compliance challenges, ensure effective implementation of licensed BDC access to the NFEM, establish regular CBN-ABCON consultations and a structured dispute-resolution mechanism and develop a sustainable regulatory environment that protects legitimate investments and encourages long-term participation.
The CBN had in May 2024, set a regulatory guideline that pegged minimum capital base for BDCs at N2 billion for Tier-1 and N500 million for Tier-2 operators.
The apex bank said the new regulatory guidelines for BDCs was part of reforms to re-position the BDC sub-sector to play its envisioned role in the foreign exchange market in Nigeria.
It directed that all existing BDCs shall re-apply for a new license according to any of the Tiers or license category of their choice as provided in the guidelines.
Also, all operators are to meet the minimum capital requirements for the license category applied for within six months from the effective date of the guidelines.
By December last year, the CBN approved licenses of 82 BDC operators under the revised guidelines. Since then, the subsequent batches of the pending lincences are still being awaited by the operators.
ABCON said: “While ABCON recognises and supports the Central Bank of Nigeria’s efforts to strengthen regulation, improve transparency and stabilise the foreign exchange market, we are concerned that the BDC sub-sector is facing significant challenges that require urgent attention. Our concern is straightforward: Nigeria must not lose a critical retail foreign exchange distribution channel in the process of reforming its financial system”.
ABCON said the BDC industry represents private investment with employment, entrepreneurial capacity and an important retail service network for travellers, small businesses and other legitimate foreign exchange users.
“We believe that the next phase of Nigeria’s FX reforms must move beyond regulatory consolidation towards building a sustainable, properly capitalised and commercially viable BDC industry. ABCON is therefore appealing for constructive engagement, pragmatic implementation and a stronger institutional partnership with the CBN,” it said.
“Our message is not confrontation. It is collaboration for survival and national economic development”.
“ABCON remains committed to professionalism, transparency, regulatory compliance and the CBN’s broader foreign exchange reform objectives. However, the survival of the BDC sub-sector must be recognised as an important component of the success of those reforms. Nigeria needs a stronger BDC industry, not a disappearing one,” it said.
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