A Federal High Court sitting in Ikoyi, Lagos, has sentenced a Bureau de Change, BDC, operator, Dabo Malam Ardi to two months in prison for conducting foreign exchange transactions outside the official market.
Justice F. N. Ogazi handed down the sentence after Ardi pleaded guilty to a one-count charge filed by the Lagos Zonal Directorate 1 of the Economic and Financial Crimes Commission, EFCC.
The EFCC charged Ardi under Section 11(1)(a) of the National Economic Intelligence Committee Establishment Act 1994, for engaging in a foreign exchange transaction outside the official foreign exchange market.
After the charge was read to him, Ardi pleaded guilty. Prosecution counsel, S. I. Suleiman, subsequently reviewed the facts of the case and urged the court to convict and sentence him accordingly.
Justice Ogazi found the defendant guilty and sentenced him to two months’ imprisonment, with an option to pay a fine of ₦80,000.
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The conviction comes amid increased regulatory scrutiny of Nigeria’s foreign exchange market, with the Central Bank of Nigeria tightening oversight of BDC operators and urging customers to transact only with licensed operators.
The CBN has, in recent years, undertaken reforms aimed at bringing BDC operations more firmly under regulatory oversight. Its revised Regulatory and Supervisory Guidelines for BDC Operations, which took effect in June 2024, introduced changes covering licensing, permissible activities, corporate governance, reporting, record-keeping and anti-money laundering requirements.
In December 2025, the CBN announced that 82 BDCs had received final licences under the revised framework, stressing that only operators with valid licences were authorised to conduct BDC business. The apex bank also warned members of the public against dealing with unlicensed foreign exchange operators.
The regulatory framework has continued to evolve in 2026. In February, the CBN announced that duly licensed BDCs could access foreign exchange through authorized dealer banks at prevailing market rates, a measure designed to improve liquidity and transparency in the retail segment of the Nigerian Foreign Exchange Market.
Ardi’s conviction and sentencing bring the case to a close, subject to the terms of the court’s order and his option of paying the stipulated fine.
