In Abuja, whispers spread as the CBN approves 82 new Bureau De Change licences.
The bank aims to boost competition and transparency, yet the move raises concerns about market stability.
For years, Nigeria’s FX market has struggled with policy shifts, sanctions, and limited dollar supply.
CBN Expands Market
Now, dozens of new players enter an already fragile ecosystem, which sparks fear among operators.
“Most of us are still adjusting to reporting obligations and increased capital requirements,” said one operator.
Consequently, adding 82 BDCs may intensify competition for the same limited foreign currency resources.
Analysts warn that without proper supervision, operators could engage in aggressive undercutting and speculative trading.
FX analyst Chude Marvelous explained that poor oversight could fragment rates and undermine pricing integrity.
Regulatory Pressure
Meanwhile, policy experts argue that the CBN should have phased approvals to monitor liquidity and operator behaviour.
Dr Nathan Udo stressed that rapid expansion could create distortions outweighing intended benefits in FX reform.
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The reforms require BDCs to meet higher capital thresholds, comply with anti–money laundering rules, and report transactions in real time.
However, many operators fear that new entrants may struggle to meet these strict requirements successfully.
Some economists note that the CBN now positions BDCs as regulated, transparent market partners.
In 2023, the bank revoked 4,173 BDC licences after operators repeatedly breached regulations.
Fatima Danladi warned that licensing too many operators without increasing dollar supply may fail.
Furthermore, operators are calling on the CBN to provide clearer guidelines for accessing official FX windows.
Licensing Details
May 2024 guidelines set Tier-1 BDCs at ₦2 billion capital and Tier-2 at ₦500 million.
Tier-1 operators may operate nationwide and open franchises after receiving CBN approval.
The licensing fees range from ₦250,000 to ₦5 million depending on the BDC tier.
As 82 new players enter, the market now wonders whether stability or chaos will follow.
Overall, FX operators, analysts, and regulators will watch closely over the coming months.
