• The Central Bank of Nigeria issued 82 final currency exchanges offices licences after revoking more than 4,000 non-compliant ones in 2024.

• The new framework, effective 27 November, introduces Tier 1 and Tier 2 licences with capital requirements of NGN 2 billion and NGN 500 million respectively.

• Only two operators qualified for Tier 1 status, while 80 others received Tier 2 authorisation.

The Central Bank of Nigeria (CBN) granted final licences to 82 currency exchange offices (BDCs), nearly one year after a sweeping clean-up that revoked more than 4,000 licences deemed non-compliant. The bank continues to restructure a market long characterised by opacity and informal practices that proved difficult to regulate.

In its statement, the CBN says that only operators listed on its official website are now authorised to operate. The bank warns that activities conducted outside this framework fall “clearly under illegality”, at a time when persistent naira volatility continues to strain the economy.

The regulatory framework that entered into force on 27 November introduces two licence categories. Tier 1 operators must hold minimum capital of NGN 2 billion, while Tier 2 operators must hold NGN 500 million. Only two operators secured Tier 1 status, while 80 others operate within a single state under Tier 2 licences. The segmentation aims to create a more structured market that is less exposed to informal flows and more aligned with international standards.

For Abuja, the reform extends beyond administrative compliance and acts as an economic stabilisation tool. Since 2023, Nigeria has faced strong pressure on FX reserves due to sustained dollar demand and persistent gaps between the official and parallel-market rates. The CBN reacted by banning street trading, tightening compliance requirements, strengthening reporting obligations and partially resuming official FX sales to BDCs. As a result, the sector has started a rapid consolidation phase.

The CBN scrapped annual licence renewal fees for eligible operators in 2025 to avoid a disruptive transition. Nonetheless, operators must comply with strict conditions, including transaction limits, mandatory identity verification and regular data reporting to the CBN.

Observers remain cautious. They argue that while the issuance of 82 licences improves transparency, it remains unclear whether the reforms can sustainably narrow the multiple exchange-rate gaps in an economy dominated by informal activity. The success of the overhaul will depend on operator discipline, regulatory enforcement and the CBN’s capacity to restore confidence in monetary policy.

This article was initially published in French by Fiacre E. Kakpo

Adapted in English by Ange Jason Quenum