Nigeria BDC Operators Hit Implementation Wall on CBN Dollar Access Directive
Bureau De Change operators report inability to purchase dollars from commercial banks one week after Central Bank of Nigeria announced new foreign exchange guidelines, despite parallel market naira appreciation to N1,385 per dollar.
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Bureau De Change (BDC) operators in Nigeria have encountered significant implementation challenges accessing foreign exchange from commercial banks one week after the Central Bank of Nigeria (CBN) issued new directives aimed at reforming the sector, according to reports from market participants.
The operational difficulties emerged despite the naira showing modest appreciation in the parallel market, strengthening to N1,385 per dollar on Tuesday from N1,393 per dollar the previous session, according to Vanguard News. The currency movement represents a 0.57% gain and indicates continued volatility in Africa's largest economy's foreign exchange markets.
Implementation Gap Widens Between Policy and Practice
The CBN's new guidelines for BDC operators, announced as the naira rallied to N1,390 per dollar earlier this month, were designed to reduce the exchange rate gap between official and parallel market rates, according to Legit.ng. However, commercial banks have reportedly not facilitated dollar sales to licensed BDC operators in the week following the directive's announcement.
Business Day reported that BDC operators face a "brickwall" in their attempts to purchase dollars from commercial banks under the new framework. The implementation bottleneck raises questions about coordination between the central bank's policy directives and operational readiness of commercial banks to execute the new foreign exchange distribution mechanism.
The CBN has not publicly commented on the reported implementation challenges or provided a timeline for when commercial banks will begin dollar sales to BDC operators under the new guidelines. The central bank's media office could not immediately be reached for clarification on the operational framework.
Parallel Market Dynamics Amid Policy Uncertainty
The naira's recent appreciation in the parallel market to N1,385 per dollar occurs against the backdrop of broader foreign exchange market reforms. The currency has shown increased stability compared to volatility experienced in previous quarters, though the gap between official and parallel market rates remains a concern for monetary authorities.
According to market data cited by Legit.ng, the naira's rise to N1,390 per dollar in mid-February represented part of a broader rally that the CBN sought to consolidate through the new BDC guidelines. The central bank's objective centers on narrowing the spread between official and parallel market rates, which has historically served as an indicator of foreign exchange market distortions.
Nigeria's foreign exchange challenges stem from structural issues including limited dollar supply, high import demand, and reduced oil export revenues. The country's external reserves stood at approximately $36.8 billion as of early February 2026, according to CBN data, providing limited buffer for currency stabilization interventions.
Sector Implications and Forward Outlook
The BDC sector plays a significant role in Nigeria's foreign exchange ecosystem, particularly for retail transactions and small-scale importers. The inability of operators to access dollars from commercial banks under the new directive could push more transactions into informal channels, potentially undermining the CBN's policy objectives.
Commercial banks' hesitation to implement the new framework may reflect concerns about regulatory clarity, operational procedures, or allocation mechanisms for dollar sales to BDCs. The financial institutions have not issued public statements explaining the delays in executing the CBN directive.
Market analysts suggest the implementation gap could widen if not addressed promptly. "The success of the CBN's BDC reforms depends entirely on commercial banks' willingness and ability to supply dollars to licensed operators," noted a Lagos-based foreign exchange consultant who requested anonymity due to regulatory sensitivities.
The naira's performance in coming weeks will likely depend on resolution of the BDC access issues, oil price movements, and broader foreign exchange inflows. The CBN faces pressure to clarify implementation procedures and ensure commercial banks comply with the new directives to maintain recent currency gains and restore confidence in the foreign exchange market framework.