How Nigeria's FX policies impact Bureau De Change operators

The decision of the Central Bank of Nigeria to discontinue the supply of foreign exchange to Bureau De Change operators has stirred mixed reactions within the market. Theresa Ezeh, CEO of Everdon Bureau De Change, shed more light on the effects of this policy during a recent interview. When the CBN made the announcement in July, it criticized the BDC market for deviating from its original purpose. The immense growth in the number of BDC operators in Nigeria over time made it increasingly challenging to regulate the sector effectively. Despite efforts by regulatory bodies to enforce compliance, some operators continued to engage in illicit activities, leading to the current situation. Ezeh highlighted the need for timely identification and removal of bad actors to prevent the spread of malpractice among BDCs. She emphasized that the CBN's actions were aimed at addressing excesses in the market and stabilizing the economy. While acknowledging the impact of the ban on BDCs, Ezeh expressed support for the government's decision, prioritizing the overall well-being of the economy. Several BDCs have already closed down as a result of the ban, underscoring the importance of adapting to new directives and strategies in the evolving landscape. Moving forward, discussions are ongoing to determine the next steps for BDCs in response to the policy changes. Despite the challenges faced by operators, the focus remains on contributing to the broader economic stability and aligning with the CBN's objectives.