Bureau De Change (BDC) operators in Nigeria say commercial banks are not supplying them with dollars as directed by the Central Bank of Nigeria (CBN), a situation they warn could further destabilize the naira.
President of the Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, said BDCs are facing severe forex shortages, unfavorable exchange rates, limited bank participation, and shrinking profit margins. These challenges, he noted, have fueled currency speculation and substitution, accelerating the naira’s decline.
The naira tumbled to 1,580/$ in the parallel market on Thursday and Friday, losing 3.5% from its 1,525/$ rate on Wednesday. At the official market, the currency weakened further, closing at 1,542/$ on Friday, down from 1,499/$ on Monday, according to data from FMDQ Securities Exchange Limited.
Meanwhile, treasury bill yields have plummeted due to rising market liquidity and easing inflation. Ayodeji Ebo, managing director at Optimus by Afrinvest, warned that lower yields could deter foreign portfolio investors, further reducing forex inflows into the country.
Analysts link the naira’s persistent depreciation to a mix of declining yields and speculative trading. Tilewa Adebajo, CEO of CFG Advisory, described the situation as a battle against market speculation.
Gwadabe called on the CBN to refine its forex policies by improving retail market interventions, granting BDCs approval to import dollar cash, and implementing a transparent monitoring system for bank dollar sales to operators. He also urged authorities to declare a state of emergency on inflation, tackle Nigeria’s fiscal deficit, and strengthen economic productivity.
Despite the CBN’s recent move to reintegrate BDCs into the official forex market—allowing them to trade up to $25,000 weekly under strict conditions—operators say banks are not complying, worsening forex scarcity.
A BDC operator, who requested anonymity, confirmed that banks have failed to supply dollars, adding to business uncertainties. The CBN initially granted BDCs temporary access to the Nigerian Foreign Exchange Market (NFEM) between December 19, 2024, and January 30, 2025, later extending the window until May 30, 2025.
With the naira under pressure and forex shortages persisting, stakeholders fear further volatility unless authorities take decisive action to stabilize the market.
