Nigeria’s Bureau De Change operators are seeking stronger institutional backing to enhance foreign exchange inflows and stabilise the Naira as the end-of-year festive period approaches.
The President of the Association of Bureau De Change Operators of Nigeria (ABCON), Dr Aminu Gwadabe, made the appeal in Lagos during an interview with the News Agency of Nigeria (NAN).
According to him, BDCs play a pivotal role in the retail foreign exchange market and can be instrumental in channelling remittances from Nigerians living abroad. “We are the closest to end-users and have the infrastructure to capture diaspora inflows that typically surge during the festive season,” he said.
Gwadabe noted that Nigeria witnesses a substantial rise in foreign currency inflows at the end of each year, as Nigerians in the diaspora return home for events, tourism and family gatherings — an annual economic boom commonly known as “Detty December”.
He revealed that Lagos State alone recorded about $71.6 million in 2024/2025 from hospitality, tourism and entertainment during the festive period.
“The BDC sector has the potential to deepen Nigeria’s foreign exchange market and help retain more inflows if adequately supported,” Gwadabe said. “In other countries, BDCs provide essential liquidity at the retail end and act as conduits for remittances. We can help repatriate funds currently moving through informal channels.”
He called on the Central Bank of Nigeria (CBN) to open formal forex access to BDCs, saying such a move would boost liquidity and reduce market volatility.
“Between 2017 and 2021, when BDCs were actively engaged, the Naira traded steadily at around ₦365 per dollar,” he recalled. “Reintegrating BDCs into the market structure will restore confidence and improve transparency.”
Gwadabe further lamented that many licensed dealers have been rendered inactive due to restricted access to official forex sources, leading to operational challenges. However, he expressed confidence that ongoing discussions with the CBN would soon yield positive outcomes.
He added that the apex bank was expediting approvals and encouraging mergers to meet recapitalisation requirements, noting that more than 200 operators had already registered under the new framework.
“These reforms will modernise the subsector and align Nigeria’s BDC industry with global best practices,” Gwadabe said.
