Bureau de Change operators occupy an important position in Nigeria’s financial system. They provide retail foreign exchange services to travellers, businesses and individuals with legitimate currency needs.
Their position between the banking system and the cash economy has also brought them into several investigations involving government officials, public accounts and politically exposed persons. In documented proceedings, investigators have alleged that naira was transferred to currency dealers, converted into dollars and returned to designated recipients as physical cash.
These cases form part of the wider history of Nigeria’s struggle to trace public funds after they leave official accounts. Bank transfers create records showing senders, recipients, dates and amounts. The trail becomes more complex when funds pass through companies, foreign exchange dealers, multiple accounts and cash deliveries.
At the point of exchange, money can take a different form. Naira held in a bank account can become United States dollars. A single payment can be divided among several recipients. An electronic transfer can also be converted into currency and handed to another person outside the formal banking system.
This point of conversion has made BDC transaction records, account statements, customer instructions and cash delivery evidence valuable in financial crime investigations.
The Exchange Point in the Financial Trail
A transfer made directly from a government account to a private beneficiary usually leaves an identifiable banking trail. Investigators can examine the originating account, the recipient, the transaction date and the amount transferred.
The trail becomes more difficult to reconstruct when funds pass through several companies, bank accounts or financial intermediaries before reaching the final recipient. A bank statement may identify a registered BDC as the recipient of a transfer without showing the person who ultimately collected the foreign currency.
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A customer may transfer naira to a currency dealer and collect the equivalent amount in dollars. The customer may also instruct the operator to pay money into several accounts or deliver cash to another person.
Investigators examining such transactions seek to establish the source of the funds, the identity of the person who authorised the exchange, the currency supplied and the individual or company that ultimately received the money.
Where public funds are involved, these questions become central to determining whether the transaction had a legitimate government purpose or formed part of a wider scheme to conceal the movement of money.
The EFCC Warning Before the 2019 Elections
In November 2018, Ibrahim Magu, then acting chairman of the Economic and Financial Crimes Commission, warned BDC operators against allowing politicians to use their businesses to move suspected proceeds of corruption ahead of the 2019 general election.
Magu said the EFCC had encountered transactions in which funds were transferred from government accounts into BDC accounts in several instalments. He also described situations in which currency operators were allegedly instructed to deliver physical cash in communities or assist political figures with property purchases.
The warning showed that the EFCC had identified some foreign exchange businesses as intermediaries between government accounts, political actors, cash distribution networks and property transactions.
It also reflected the growing importance of financial records in election related investigations. Political expenditure in Nigeria often involves transport, rallies, campaign offices, delegate mobilisation, security, media advertising and payments made through supporters and associates.
Where these activities rely heavily on physical cash, currency dealers can become part of the chain through which money moves from an account to its eventual destination.
Willie Obiano’s Trial and the Conversion of Naira Into Dollars
The prosecution of former Anambra State governor Willie Obiano provides a prominent example of BDC testimony in a public funds case.
The EFCC arraigned Obiano in January 2024 on charges involving more than ₦4 billion. He pleaded not guilty.
During the proceedings in November 2024, BDC operator Ayuba Tanko testified that he received a total of ₦416 million in instalments between April and December 2017.
Tanko told the Federal High Court that the money was converted into approximately $1.137 million. According to his testimony, the dollar equivalent was returned in physical cash.
The transactions described in court illustrated how an electronic naira payment could be transformed into foreign currency and removed from the direct banking trail. Once cash dollars leave the operator, investigators must rely on witness testimony, transaction ledgers, account records and related evidence to determine the final recipient.
Obiano denied the charges, and the trial continued before the Federal High Court.
The proceedings placed the activities of currency dealers at the centre of a wider examination of how Anambra State funds were allegedly handled during his administration.
The Bauchi Accountant General Proceedings
Another case involving a BDC operator began in April 2025, when the EFCC arraigned Bauchi State Accountant General Sirajo Jaja alongside currency dealer Aliyu Abubakar and a company associated with Abubakar.
The charges concerned transactions involving funds belonging to the Bauchi State Government. The defendants pleaded not guilty.
As the proceedings continued, prosecutors amended the charges and adjusted the total amount connected to the allegations. Earlier reports referred to approximately ₦1.8 billion and ₦1.49 billion.
By April 2026, the EFCC’s amended case concerned approximately ₦1.635 billion in Bauchi State funds.
The prosecution alleged that payments had been made from government accounts and processed through businesses and individuals, including a BDC operator.
The proceedings brought a senior government financial official and a currency dealer before the same court over the alleged handling of public money. The case continued under the amended charges.
The ₦30.7 Million Interim Forfeiture Order
In January 2026, the Federal High Court in Abuja ordered the interim forfeiture of ₦30.7 million recovered during an EFCC investigation involving BDC operator Adamu Yakubu.
The investigation had initially focused on senior officials of the Nigerian National Petroleum Company Limited. During the inquiry, the EFCC obtained transaction records from Yakubu.
According to the agency’s filings, the records showed that more than ₦4 billion had been transferred to different individuals and companies on the instruction of an official of the Federal Inland Revenue Service.
The EFCC told the court that the BDC operator identified the remaining ₦30.7 million as money belonging to the FIRS official. The official denied ownership of the funds.
The court ordered the temporary forfeiture of the money and directed anyone claiming ownership to explain why it should not be permanently forfeited to the Federal Government.
The proceeding demonstrated the role of a BDC ledger in reconstructing financial transactions. Such records can show amounts received, dates of payments and the accounts or companies to which money was subsequently transferred.
The CBN Revocation of 4,173 BDC Licences
On 1 March 2024, the Central Bank of Nigeria revoked the operational licences of 4,173 BDC operators.
The CBN identified failures that included non payment of required fees, failure to submit transaction returns and breaches of rules relating to money laundering and terrorist financing.
The action became one of the largest regulatory interventions in the history of Nigeria’s retail foreign exchange sector.
The CBN’s decision followed years of concern about the number of operators in the market, the quality of transaction records and the ability of regulators to supervise thousands of businesses.
In May 2024, the bank introduced revised regulatory and supervisory guidelines for BDC operations. The framework created new licensing categories, capital requirements, governance standards and reporting responsibilities.
The reforms sought to create a smaller and more closely supervised foreign exchange market. Operators were required to maintain proper customer records, submit regulatory returns and comply with rules designed to identify suspicious financial transactions.
The changes also reflected the government’s wider effort to bring foreign exchange activities into formal and traceable channels.
BDCs Return to the Official Foreign Exchange Market
In February 2026, the Central Bank allowed qualified BDC operators to purchase foreign currency from authorised dealer banks.
Each eligible operator could buy up to $150,000 weekly at prevailing market rates.
The policy included customer identification requirements, electronic reporting and restrictions on how funds could be paid or received. Third party transactions were prohibited, while unused foreign currency had to be returned to the market within 24 hours.
Cash payments were limited to 25 per cent of each transaction. The remaining amount had to move electronically through accounts held with licensed financial institutions.
The rules were intended to preserve an identifiable record of both sides of a foreign exchange transaction. Electronic payment records allow regulators to identify the person who paid for the currency, the licensed operator that completed the exchange and the account through which the transaction was settled.
The decision also marked a change from earlier periods when BDC operators had limited access to official foreign exchange.
By restoring controlled access, the CBN sought to meet legitimate retail demand while reducing the movement of transactions into informal markets.
Campaign Finance and Nigeria’s Cash Economy
The involvement of BDC operators in some political finance investigations cannot be separated from the cost of seeking public office in Nigeria.
President Bola Tinubu signed the Electoral Act 2026 on 18 February 2026.
The law increased the maximum campaign expenditure for a presidential candidate to ₦10 billion. A governorship candidate could spend up to ₦3 billion.
The maximum expenditure for a senatorial candidate was set at ₦500 million, while a House of Representatives candidate could spend up to ₦250 million. The limit for a state assembly candidate was set at ₦100 million.
Political expenditure often begins before the official campaign period. It may include party nomination forms, delegate meetings, transportation, campaign offices, rallies, political consultations, advertising, security and court disputes.
In June 2026, EFCC chairman Ola Olukoyede said some governorship aspirants had spent between ₦20 billion and ₦30 billion in their efforts to obtain party nominations.
His statement reflected official concern about the gap between legal campaign limits and the broader cost of political competition.
Large political operations create demand for liquidity. Cash may be needed for transport, accommodation, mobilisation, campaign materials and other activities involving numerous recipients.
Foreign currency may also be required for international travel, imported equipment or transactions outside the country. This financial environment creates opportunities for banks, companies, aides and currency dealers to become part of the movement of political money.
The Fayose Case and the 2025 Acquittal
The prosecution of former Ekiti State governor Ayodele Fayose became one of Nigeria’s most closely followed election finance cases.
The EFCC accused Fayose and his company, Spotless Investment Limited, of money laundering in a case involving approximately ₦6.9 billion.
Part of the prosecution’s case concerned funds allegedly connected to the 2014 Ekiti governorship election. Witnesses testified about cash deliveries, bank transactions and the movement of money during the election period.
On 16 July 2025, the Federal High Court in Lagos upheld Fayose’s no case submission.
The court discharged and acquitted Fayose and Spotless Investment Limited after ruling that the prosecution had not established a case requiring them to present a defence.
The EFCC announced that it would appeal the judgment.
The acquittal became the principal trial court outcome in a case that had lasted several years and involved extensive public debate about campaign finance and the movement of security funds during the administration of President Goodluck Jonathan.
Nigeria’s Removal From the FATF Grey List
On 24 October 2025, the Financial Action Task Force removed Nigeria from its list of jurisdictions under increased monitoring.
The list is commonly called the FATF grey list. Countries placed under increased monitoring are required to address weaknesses in their systems for preventing money laundering, terrorist financing and the financing of weapons proliferation.
Nigeria had been placed on the list in February 2023.
FATF said Nigeria had substantially completed the action plan developed to correct the identified deficiencies. The country strengthened aspects of its legal framework, supervision, financial intelligence and enforcement system.
Removal from the grey list marked an important stage in Nigeria’s effort to improve international confidence in its financial institutions.
The regulatory reforms affecting BDC operators formed part of the wider environment in which authorities sought better reporting, stronger customer identification and greater oversight of cash and foreign exchange transactions.
The Wider Network Behind Public Money
BDC operators represent only one part of the financial chain examined in Nigerian corruption investigations.
The original funds may come from a government ministry, state account, public agency or contractor. Banks process the transfers, while companies and individuals may receive portions of the money.
Accountants, political aides, business owners, property dealers and currency operators may then become involved at different stages.
A BDC operator often enters the story when naira is converted into dollars or when money is returned in physical cash. The transaction may create distance between the public account from which the money originated and the individual who ultimately receives it.
The full financial trail therefore begins with the official who authorises a payment and continues through every account, company and intermediary involved in the movement of the funds.
The investigation is completed only when the source, instructions, conversion and final beneficiary have been identified.
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Conclusion
BDC operators have become recurring figures in Nigeria’s corruption history because they work at the point where money changes form.
Naira held in a government account can become foreign currency. An electronic payment can become physical cash. A large transfer can be divided among several individuals or companies.
The EFCC’s warning before the 2019 elections, testimony in Willie Obiano’s trial, the Bauchi Accountant General proceedings and the January 2026 forfeiture case all revealed how currency dealers could enter investigations involving public funds.
The CBN’s revocation of 4,173 licences in 2024 and the introduction of stricter regulatory requirements reflected the government’s attempt to create a more transparent and accountable foreign exchange market.
The central challenge extends beyond the BDC sector. It includes the management of government accounts, the supervision of banks, the ownership of private companies, the cost of political campaigns and the continued use of physical cash.
Following the money requires investigators to examine the entire chain, from the person who authorises a public payment to the operator who converts it and the final beneficiary who receives the proceeds.
Author’s Note
The history of BDC operators in Nigerian corruption cases reveals how public money can become difficult to trace after it leaves an official account. Currency dealers appear at the point where naira may be converted into dollars, divided among several recipients or returned as physical cash. The cases involving Willie Obiano, Bauchi State officials and the January 2026 forfeiture proceeding show the importance of transaction ledgers, bank records and witness testimony in rebuilding the financial trail. Nigeria’s lasting task is to connect foreign exchange supervision with transparent government spending, accountable political finance and timely enforcement across every institution and individual involved in moving public funds.
References
Central Bank of Nigeria. “CBN Revokes Operational Licences of 4,173 BDCs.” 1 March 2024.
Central Bank of Nigeria. “Revised Regulatory and Supervisory Guidelines for Bureau de Change Operations in Nigeria.” May 2024.
Reuters. “Nigeria’s Central Bank to Sell Dollars to Retail Foreign Exchange Traders to Boost Liquidity.” 11 February 2026.
Presidency of the Federal Republic of Nigeria. “President Tinubu Signs Amended Electoral Act.” 18 February 2026.
Policy and Legal Advocacy Centre. “Factsheet on Campaign Spending Under the Electoral Act 2026.” February 2026.
Financial Action Task Force. “Jurisdictions Under Increased Monitoring.” 24 October 2025.
Punch Newspapers. “Be Wary of Politicians’ Excesses, Magu Warns Bureau de Change Operators.” 15 November 2018.
Premium Times. “I Received ₦416 Million in Eight Months, BDC Operator Testifies in Former Governor Obiano’s Trial.” 13 November 2024.
Premium Times. “EFCC Re Arraigns Bauchi’s Accountant General for ₦1.49 Billion Fraud.” 18 June 2025.
The Guardian Nigeria. “EFCC Re Arraigns Bauchi Accountant General and BDC Operator Over Alleged ₦1.63 Billion Fraud.” 29 April 2026.
Premium Times. “Court Orders Interim Forfeiture of ₦30.7 Million Recovered From BDC Operator Linked to FIRS Official.” 6 January 2026.
Punch Newspapers. “EFCC to Appeal Judgment Acquitting Fayose.” 16 July 2025.
