The Association of Bureau De Change Operators of Nigeria (ABCON) has called on the Central Bank of Nigeria (CBN) and key financial regulators to empower Bureau De Change (BDC) operators to play a more active role in stabilising the naira and boosting foreign exchange inflows during the upcoming festive season.
According to Dr. Aminu Gwadabe, ABCON President, empowering licensed BDCs ahead of the year-end “Detty December” festive period — known for its surge in tourism, diaspora remittances, and event-driven spending — would significantly enhance Nigeria’s capacity to capture and retain foreign exchange earnings.
“BDC operators are closest to retail forex users. If properly empowered, we can channel the billions of dollars in diaspora inflows that come into Nigeria every December, helping to stabilise the naira and improve market liquidity,” Gwadabe said.
Harnessing Nigeria’s Festive Dollar Inflow Potential
The festive season, Gwadabe explained, remains one of Nigeria’s most liquid forex periods, driven by returning Nigerians in the diaspora, tourism, concerts, and hospitality-related spending.
Citing official figures, he noted that Lagos State alone generated $71.6 million from tourism and entertainment in 2024/2025, underscoring the immense potential of the December economy.
He emphasised that with the right policy framework, BDCs could help Nigeria harness these inflows, particularly by offering legitimate and accessible retail forex services for visitors and small businesses.
“Globally, BDCs are integral to foreign exchange management — providing liquidity, facilitating remittances, and supporting retail forex access. Nigeria must not leave this channel underutilised,” he said.
CBN Urged to Reintegrate BDCs into the Formal FX Framework
Gwadabe urged the Central Bank of Nigeria to democratise access to foreign exchange by reintroducing BDCs into formal forex distribution channels.
He stressed that when BDCs were fully operational between 2017 and 2021, the exchange rate remained relatively stable around ₦365 per dollar, a period of market calm compared to recent volatility.
“BDCs helped the CBN inject liquidity, monitor the parallel market, and reduce speculative demand. Excluding them only fuels inefficiency and drives activity underground,” he stated.
The ABCON President noted that thousands of licensed BDCs have become redundant due to restricted access to official forex sources, limiting their operational capacity and contribution to the economy.
He expressed optimism that ongoing consultations with the CBN would lead to a restructured, transparent, and tech-driven BDC ecosystem.
Reforms and Recapitalisation to Strengthen the Sector
Dr. Gwadabe also disclosed that the CBN is fast-tracking the BDC recapitalisation and reform process to restore confidence and strengthen regulatory compliance.
He revealed that over 200 BDCs have already registered under the new framework, while the apex bank is issuing Approvals-in-Principle (AIP) and encouraging mergers among smaller operators to meet capital requirements.
“The recapitalisation and digital reform process will position Nigerian BDCs to compete globally and align with international best practices in retail forex management,” he added.
BRANDECONOMY ANALYSIS: BDC Empowerment as a Catalyst for Forex Stability
Nigeria’s foreign exchange challenges — from liquidity shortages to multiple exchange windows — underscore the need for a rebalanced forex ecosystem.
Empowering BDCs is not merely about retail operations; it’s about restoring efficiency, market depth, and investor confidence at the grassroots level.
The festive influx of diaspora dollars, if properly channelled, could inject billions into Nigeria’s financial system, ease speculative pressure, and strengthen naira stability going into 2025.
BRANDECONOMY analysis indicates that a digitally integrated BDC framework, powered by fintech tools and CBN oversight, could make Nigeria’s retail forex market more transparent, efficient, and compliant with global AML/CFT standards.
“With strategic empowerment, BDCs could become Nigeria’s soft power tool for managing liquidity, attracting remittances, and stabilising exchange rates — a model already thriving in markets like Kenya, Egypt, and the UAE,” our analysis noted.
The Big Picture: From Policy Control to Market Collaboration
The ABCON call represents a larger shift in Nigeria’s forex management narrative — from centralised control to collaborative market engagement.
As global remittance flows rise above $23 billion annually, experts believe that tapping into the retail forex sub-sector through BDCs will be critical for achieving sustainable naira stability, improved investor confidence, and fiscal inclusion.
