CBN Tightens Forex Market, Approves 82 BDC Operators

The Central Bank of Nigeria (CBN) has issued final operating licenses to 82 Bureaux De Change (BDCs), marking the first group of operators approved under its strengthened regulatory framework aimed at tightening control over the nation’s retail foreign exchange market. The approvals, announced late Monday, take effect from November 27, 2025.

The move follows a major cleanup exercise earlier this year, which saw the CBN revoke the licenses of thousands of BDCs that failed to meet regulatory standards. The bank said the new licenses were granted only after a thorough review process under the Regulatory and Supervisory Guidelines for Bureaux De Change Operations in Nigeria 2024, which introduced stricter entry requirements and a two-tier licensing system.

Under the new framework, Tier 1 BDCs must maintain a minimum capital base of ₦2 billion (about $1.38 million) and are allowed to operate nationally with branches and franchises. Tier 2 BDCs require a minimum capital of ₦500 million and can operate in only one state or the Federal Capital Territory (FCT). Of the newly licensed operators, two qualified as Tier 1, while the remaining 80 were classified as Tier 2.

Acting Director of Corporate Communications, Hakama Sidi Ali, urged the public to transact only with licensed BDCs listed on the CBN website, warning that operating a BDC without a valid license is punishable under Section 57(1) of the Bank and Other Financial Institutions Act (BOFIA) 2020. The CBN said the consolidation of the BDC sector is intended to ensure the retail forex market serves legitimate purposes, including Personal Travel Allowance, Business Travel Allowance, and payments for overseas education and medical expenses.