Eighty-Two BDC Operators Scale Through CBN’s New Compliance Requirements

At least 82 Bureau De Change operators have successfully met the Central Bank of Nigeria’s newly introduced regulatory guidelines, marking one of the most significant compliance milestones since the apex bank announced sweeping reforms across the foreign exchange market. The development reflects the first batch of operators cleared under the revised framework, which aims to strengthen transparency, curb illicit financial flows and stabilise Nigeria’s FX landscape.

The CBN had earlier unveiled stringent operational rules requiring BDCs to upgrade their corporate governance structures, enhance documentation processes, adopt stricter anti–money laundering controls and improve reporting standards. The guidelines were introduced as part of wider efforts to sanitise the retail end of the currency market, which has long faced criticisms over weak regulatory compliance, rate manipulation and poor operational accountability.

According to officials familiar with the screening process, the 82 approved operators fulfilled key conditions relating to capital adequacy, corporate registration, personnel qualification, and adherence to reporting obligations. The CBN is said to have scrutinised each applicant’s financial records, ownership structure and compliance history to ensure all approved BDCs demonstrate the capacity to operate within the updated regulatory framework.

Stakeholders explained that the move signals the regulator’s determination to overhaul the FX ecosystem by ensuring that only credible and financially sound operators are permitted to participate in official currency trading. The approval also comes as the apex bank continues its campaign against unlicensed currency dealers and market practices that distort exchange rate stability.

Industry operators noted that meeting the new requirements was a rigorous process that demanded significant investment in technology, staff training, and internal controls. Under the guidelines, BDCs must maintain verifiable customer records, document all transactions, provide real-time reporting to the CBN and comply with Know Your Customer and anti-terrorism financing rules. Some operators who previously relied on manual documentation were required to automate their systems in order to meet the expected standards.

The CBN had emphasised that the reforms were necessary to strengthen the integrity of Nigeria’s foreign exchange market and reduce opportunities for arbitrage. Authorities said a more disciplined BDC subsector would help improve rate convergence, curb speculative trading and reinforce confidence among investors and businesses. The regulator also maintained that the new framework will promote accountability among operators who play a significant role in the retail segment of FX transactions.

Market observers expressed optimism that the approval of the first set of compliant BDCs will boost liquidity in the official market and gradually reduce pressure on the parallel market. They noted that a properly regulated BDC environment could help narrow disparities between official and street market rates, offering more predictable pricing for travellers, SMEs and individuals seeking foreign currency legally.

However, analysts cautioned that the success of the reforms will depend on consistent enforcement. They argued that the CBN must sustain close supervision of licensed operators while ensuring that violations attract clear sanctions. According to them, previous regulatory lapses and inconsistent enforcement contributed to the proliferation of unregulated currency trading hubs across major cities, a challenge the new guidelines aim to address.

BDC operators who met the requirements expressed satisfaction with the approval, saying the reforms would help rebuild public trust in their operations. Some noted that compliance is necessary for the subsector’s long-term survival, as global financial trends increasingly demand strict transparency in FX transactions. They added that BDCs must now adopt more structured business models rather than relying on informal market practices.

Consumer advocacy groups also commended the development, stating that improved regulation would protect Nigerians from exploitation and enhance the legitimacy of FX transactions. They urged the CBN to ensure that licensed BDCs adhere to customer-friendly practices, including fair pricing, proper receipts, and dispute resolution mechanisms.

The apex bank stated that the approval of the 82 operators represents only the first phase of the process. More applicants are expected to be screened and evaluated in the coming weeks. The CBN also hinted that it would continue adjusting its regulatory approach to align with evolving market conditions and international best practices, noting that a transparent and well-supervised BDC market is essential for achieving long-term FX stability.

The regulator reiterated that compliance with the new framework is non-negotiable, urging all operators yet to meet the requirements to expedite efforts or risk being excluded from the formal FX market. It also warned that any approved BDC found violating the guidelines could face suspension or outright licence revocation.

 

As Nigeria works to stabilise its currency and restore confidence in the FX market, the clearance of the 82 compliant BDCs marks a promising step toward a more disciplined and transparent system. Stakeholders believe the reforms—if sustained—could play a major role in strengthening the naira, improving investor sentiment and positioning the financial system for greater resilience.