Nigeria’s Bureau De Change operators say they are barely surviving after the Central Bank of Nigeria (CBN) halted dollar allocations to their sector, leaving many struggling to stay afloat amid rising costs and falling demand.
Across Lagos and other major cities, the once-bustling currency exchange stalls have grown quieter.
Behind the counters, licensed operators now face a grim reality, empty offices, unpaid staff, and a market that has slipped into near paralysis.
Survival Mode as Operations Shrink
Abubakar Ardo, a licensed BDC operator in Lagos, said business had “never been this dry.” He explained that the CBN’s decision to cut off forex supply has pushed many operators to the brink.
“Most of us are just trying to survive,” he said. “Since the CBN stopped selling forex directly to us, operations have been badly affected. We used to rely on the official window for steady access to dollars at regulated rates, but that door has been shut for a long time.”
Without access to official channels, most traders now depend on walk-in customers selling small amounts of foreign currency. But even that flow has slowed dramatically as Nigerians shift toward online transfers and international money operators.
“Demand for physical dollars has dropped sharply,” Ardo said. “Many customers now prefer to use online platforms or IMTOs for transactions. That might help stabilise the naira on paper, but for us on the street, it’s suffocating business.”
He said many operators have cut staff or temporarily shut down to reduce costs, while others are holding out hope for CBN’s eventual policy reversal.
The Ripple Effect on Everyday Nigerians
For ordinary Nigerians, the shrinking activity in the BDC market has real consequences. With less access to physical foreign currency, small business owners and travellers now face higher rates on the parallel market, where dollars sell for a premium.
Importers, in particular, are feeling the pinch. “When BDCs are dry, the market becomes volatile,” explained one trader at Lagos’ Balogun Market. “If I can’t get forex easily, I pay more for goods, and that cost goes straight to consumers. That’s why prices keep climbing.”
The forex squeeze adds to inflationary pressures already eating deep into household budgets. Transport fares, electronics, and imported food items have all seen price hikes linked to currency scarcity.
Economists warn that without a functioning retail forex channel, Nigeria risks widening the gap between the official and parallel market rates, a scenario that could further undermine investor confidence and squeeze consumers even harder.
