CBN Issues Final Licenses to 82 Bureau De Change Operators

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Nigeria’s foreign exchange market has entered a new regulatory phase following the decision by the Central Bank of Nigeria to grant final operating licences to 82 Bureau De Change operators. The approval, which took effect on November 27, 2025, concludes a wide-ranging review of the country’s currency exchange sector.

The announcement was made in an official statement issued by Hakama Sidi Ali. In the statement, the bank advised Nigerians and businesses to ensure they conduct foreign exchange transactions only with the authorised operators that have successfully completed the licensing process.

Recapitalisation Programme Reshapes the Sector

The licensing exercise is part of a broader restructuring initiative designed to strengthen transparency and improve oversight in Nigeria’s Bureau De Change industry. The review was carried out under provisions of the Bank and Other Financial Institutions Act as well as the updated supervisory guidelines governing BDC operations released in 2024.

Earlier in May 2024, the apex bank withdrew all previously issued BDC licences nationwide and required operators to reapply under a new regulatory framework. The objective was to restructure the market, improve liquidity, and eliminate irregular practices that had previously affected the sector.

Two-Tier Licensing Structure Introduced

Under the new policy, BDC operators were required to meet significantly higher financial thresholds depending on the category of licence they sought.

The revised framework established two main categories:

Tier One operators were required to demonstrate a minimum capital base of about ₦2 billion.
Tier Two operators needed to maintain at least ₦500 million in capital.

The Central Bank gave existing operators a six-month window to meet these new requirements and submit fresh applications for approval.

Public Warned Against Unlicensed Forex Dealers

Authorities stressed that only the newly approved BDC companies are permitted to carry out foreign exchange transactions from the effective date of the licence approval.

The regulator also reminded the public that running a Bureau De Change business without valid authorization constitutes a criminal offence under the financial laws of Nigeria. Individuals and companies were urged to verify licensed operators through the Central Bank’s official channels before conducting transactions.

To improve transparency, the apex bank indicated that the official list of licensed operators will be updated periodically on its website to enable easy public verification.

Commentary and Economic Analysis

The completion of the BDC recapitalisation exercise represents one of the most significant regulatory interventions in Nigeria’s foreign exchange market in recent years. By increasing capital requirements and introducing stricter licensing standards, the Central Bank aims to create a more stable and accountable currency exchange environment.

Economic analysts believe that stronger oversight of BDC operators could help reduce speculative trading and improve confidence in Nigeria’s forex system. However, some observers caution that limiting the number of licensed operators may also concentrate market activity among fewer participants.

Ultimately, the success of the reform will depend on consistent enforcement, transparency, and coordination between regulators and market participants. If effectively implemented, the policy could contribute to a more disciplined foreign exchange sector and support broader efforts to stabilize Nigeria’s currency market.