BDC operators remain excluded as the CBN enforces strict control over Nigeria’s official forex market access.
Forex traders told newsmen that compliance concerns drive the CBN to maintain restrictions on BDC participation.
CBN Maintains Tight Forex Market Control
The CBN prefers bank-led Forex distribution because it strengthens oversight and reduces systemic leakages.
Officials actively aim to curb arbitrage and round-tripping, and this stabilises the market.
BDCs argue that regulators unfairly associate them with money laundering and terrorism financing risks.
An ABCON official said this perception pushes regulators to limit FX channels and tighten control.
He added that banks offer centralised monitoring, and this improves regulatory transparency significantly.
Meanwhile, trader Umar Barkinzuwo said policy reflects control concerns and past market abuses.
He noted that authorities trust banks more because they improve transaction tracking and supervision systems.
Consequently, the CBN uses bank intermediation to enhance liquidity management and market stability.
BDC Access And Market Pressure
However, BDC operators argue exclusion reduces retail liquidity and increases pressure on the black market.
They say unmet retail FX demand pushes users into informal and unregulated channels.
As a result, volatility continues in Nigeria’s parallel foreign exchange market.
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Tensions increased after the June 2023 FX market unification reform reshaped the system.
Previously, in July 2021, the CBN stopped all forex sales to BDC operators.
It cited risks of illicit financial flows and money laundering concerns.
Later, in February 2024, the CBN briefly restored limited access after licence revocations.
However, it later withdrew the arrangement due to regulatory challenges.
Limited Access And Ongoing Reforms
By February 2026, the CBN granted BDCs restricted weekly access of $150,000.
Still, operators say banks do not consistently deliver effective retail FX access.
In December 2024, the CBN introduced a temporary $25,000 weekly allocation.
It enforced strict pricing rules tied to prevailing market exchange rates.
Meanwhile, BDCs introduced reforms such as automation, training, and self-regulation.
Despite these efforts, analysts say trust and control concerns still shape CBN policy.
