Bureau de Change (BDC) in Nigeria: How They Work, Rates & Finding a Licensed One

A Bureau de Change (BDC) is a business licensed to buy and sell foreign currency in cash. In Nigeria they sit between the banks and the street: more formal and better priced than a random roadside changer, more flexible and cash-friendly than a commercial bank.

How a BDC sets its rate

A BDC buys currency at one price and sells slightly higher — the difference (the spread) is its margin. Its rate tracks the parallel market closely because that is where it sources and offloads stock. Expect it to be a little above the official bank rate and usually a touch better than an individual street dealer for larger amounts.

CBN licensing: why it matters

Licensed BDCs are registered with the Central Bank of Nigeria and must meet capital and reporting rules. Using a licensed operator means your transaction is documented, your cash is less likely to be counterfeit, and you have some recourse if something goes wrong. The CBN periodically revises BDC capital requirements and resumes or pauses direct FX sales to them, which affects how much stock they hold.

Telling a licensed BDC from a street changer

• A licensed BDC has a registered business name, a fixed premises and can issue a receipt.
• They will not pressure you to decide in seconds or move to a side street.
• They can quote a clear buy and sell rate and explain their spread.