The Central Bank of Nigeria’s announcement marks a significant milestone in Nigeria’s ongoing foreign exchange market reforms, giving the nod to only 82 Bureau De Change operators who met the stringent new requirements and received final operating licenses, effective November 27, 2025.
The new policy regime recognises that Nigeria’s foreign exchange market has faced persistent challenges over the years, including significant pressure on the Naira with exchange rates fluctuating dramatically in both official and parallel markets; multiple exchange rate windows created arbitrage opportunities and market distortions; many BDC operators engaged in unauthorized activities, including street trading and non-compliance with anti-money laundering regulations and lack of proper oversight led to unregulated foreign exchange activities.
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Credible News reports that in May 2024, the CBN took a drastic step by revoking the licenses of over 4,173 BDC for various infractions, including Non-payment of regulatory fees, Non-compliance with Anti-Money Laundering/Combating Financing of Terrorism requirements, engaging in unauthorized street trading and Failure to maintain proper capital requirements.
On May 22, 2024, the CBN issued a revised guidelines for BDC operation with significantly enhanced capital base. Tier 1 licenses now N2 billion from ₦35 million to ₦2 billion, Tier 2 licenses now ₦500 million including ₦1 million and N5 million as application and licence fees respectively.
The announcement references the Banks and Other Financial Institutions Act 2020 which provides the legal foundation for CBN’s regulatory authority. The CBN’s stringent licensing process aims to eliminate illegal operators, remove unauthorized foreign exchange dealers from the market, enhance market transparency, ensure all operators meet proper regulatory standards, strengthen capital adequacy, ensure BDCs have sufficient capital to operate professionally, combat money laundering, implement robust AML/CFT compliance measures and stabilize the forex market and create a more organized and predictable foreign exchange.
“By this notice, only Bureaux De Change listed on the Bank’s website are authorised to operate from the effective date.
“While the CBN will continue to update the list of Bureaux De Change with valid operating licences for public verification on our website (www.cbn.gov.ng), the Bank advises the general public to avoid dealing with unlicensed Foreign Exchange Operators.
“For the avoidance of doubt, operating a Bureau De Change business without a valid licence is a punishable offence under Section 57(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020.
“Members of the public are hereby advised to note and be guided accordingly”, the Bank statement read.
Crediblenewsng.com
