The Central Bank of Nigeria (CBN) has granted final operating licenses to 82 Bureaux De Change (BDCs), confirming the first batch of operators authorized under the bank’s rigorous new regulatory framework, which seeks to tighten control over the nation’s volatile retail foreign exchange market.
The approvals, announced late Monday, take effect from November 27, 2025, and follow a sweeping cleanup exercise that saw the CBN revoke the licenses of thousands of BDCs earlier this year for failing to meet regulatory requirements.
The CBN, exercising powers under the Bank and Other Financial Institutions Act (BOFIA) 2020, emphasized that the licenses were granted only after a comprehensive review process designed to ensure that operators meet the new Regulatory and Supervisory Guidelines for Bureaux De Change Operations in Nigeria 2024.
The 2024 guidelines introduced significantly higher entry barriers and created a two-tiered licensing system:
Tier 1 BDCs: Required to maintain a minimum capital base of ₦2 billion (approximately $1.38 million). These operators can function nationally and establish branches and franchises.
Tier 2 BDCs: Required to maintain a minimum capital base of ₦500 million. These operators are restricted to operating in only one state or the Federal Capital Territory (FCT).
Of the 82 newly licensed operators, only two were approved as Tier 1 BDCs, with the remaining 80 falling under the Tier 2 category.
Acting Director of Corporate Communications, of the Apex Bank, Hakama Sidi Ali, warned the public to exercise extreme caution in their forex dealings.
"Only Bureaux De Change listed on the Bank's website are authorized to operate from the effective date," the statement read, adding that the list would be continuously updated for public verification on the CBN's website.
CBN also issued a stern warning that operating a BDC without a valid license is a punishable offense under Section 57(1) of the BOFIA 2020, signaling the bank's intent to enforce the new regime with legal consequences.
The new licensing regime comes nearly two years after the CBN revoked the licenses of over 4,000 BDCs in March 2024 over non-compliance with Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) regulations, among other issues.
The 2024 guidelines explicitly prohibit non-permissible activities like street-trading, taking deposits, and granting loans.
This consolidation of the BDC sector into a smaller, more tightly regulated pool aims to ensure that the retail forex market serves legitimate needs, such as Personal Travel Allowance (PTA), Business Travel Allowance (BTA), and payments for overseas medical bills and school fees.
