Picture a Nigerian trader who needs to pay a supplier in China. She doesn't have a dollar account, so she hands naira to a currency dealer who promises to "settle" the supplier abroad and sends her a stamped invoice and some paperwork as proof. Weeks later, the goods haven't arrived and the supplier says nothing was received. That is the kind of situation readers should have in mind after recent reports about a bureau de change (BDC) case.
What was reported
Sahara Reporters reported that the EFCC arraigned a BDC operator and companies over an alleged N446million fraud, including allegations involving forged Chinese documents. The Nigerian Voice reported that the EFCC took an Anambra BDC operator to court over an alleged N446.5m fraud.
That is all the headlines tell us, and we won't guess at more. These are allegations. An arraignment means a person has been formally charged in court and asked to respond. It is not a verdict, and the defendants are presumed innocent until a court decides otherwise. Read the full reports from those outlets for what the court was told.
Still, the headlines point to a risk any importer, student or family member can face when money must move abroad through a middleman: you can't see where the money goes, and paperwork can look convincing even when it isn't real.
Who is most exposed
- Small importers paying suppliers in China or elsewhere through an agent.
- Parents paying foreign school fees through a "contact" who offers an easier route.
- People who need dollars for travel or online subscriptions and use whoever is quickest.
- Anyone asked to pay a large sum into a personal account for a business service.
Red flags when an intermediary handles your foreign payment
1. Payment goes to a personal account
If a company says it will deliver your payment but tells you to send naira to a private individual's account, stop. A registered business should have a corporate account in its registered name. Mismatched names are the easiest red flag to spot and the one people ignore most.
2. You can't confirm the operator is licensed
BDCs in Nigeria operate under the Central Bank of Nigeria's rules. Don't take a licence certificate from the dealer on trust; a photo can be copied. Ask for the full registered name and licence details, then confirm with the CBN directly through its official website, cbn.gov.ng. If the CBN can't confirm it, treat the dealer as unlicensed.
3. Documents arrive but can't be verified independently
The report mentions forged Chinese documents. Whatever a dealer shows you, such as a receipt from a foreign bank, an invoice or a remittance slip, can be faked. The only proof that counts is confirmation from the receiver, ideally from a source you contacted yourself, not a number the dealer supplied.
4. Pressure and secrecy
"Rate expires in an hour," "don't tell your bank," or "pay everything upfront because the slot is closing" are classic pressure lines. A legitimate dealer can wait while you check.
5. A rate that beats everyone else
If the offer is clearly better than what regulated banks and licensed dealers give, ask why. Someone is either cutting corners, moving money in ways you don't want to be part of, or planning to keep yours.
6. Payment in full before any delivery of proof
Large one-off transfers with nothing in writing leave you with no leverage.
A step-by-step check before you send money
- Get the business identity. Full registered name, address, CAC registration number, and the name on the account you will pay.
- Match names. The account name should match the company. If not, ask why in writing and don't send until it's explained.
- Verify the licence with the CBN rather than the dealer.
- Confirm with the supplier directly. Use contact details you found independently, such as the supplier's official site or a verified marketplace listing. Ask how they expect to receive payment and whether they know the intermediary.
- Put the agreement in writing. Amount, what will be paid, to whom, by what date, and what happens if it fails. Keep chats, call logs and receipts.
- Split the risk. For a first deal, send a small amount, get the supplier's confirmation, then send the rest.
- Ask for proof you can check. Ask the supplier to confirm receipt by email from their business address.
A hypothetical example
Say you need to pay a supplier ₦8,000,000 worth of goods. A dealer you found through a friend of a friend offers to settle it, and asks for the full sum into a personal account. Here's how the checks play out.
| Step | What you do | What it tells you |
|---|---|---|
| Account name | Compare with the company name | Mismatch means ask for a corporate account |
| Licence | Confirm with the CBN | No confirmation, walk away |
| Supplier call | Contact them yourself | If they know nothing of the dealer, stop |
| Test payment | Send ₦500,000 first | Supplier confirms receipt, or you lose a small amount only |
The test payment costs you a day. A full loss costs you the business. A dealer who refuses a staged payment has told you something useful.
Safer alternatives to consider
- Your bank. Ask about foreign transfers or trade payment options. It may be slower and need documents, but there is a regulated record.
- Licensed payment providers. Some fintech services handle cross-border payments. Check their regulatory status on their own site and confirm with the regulator before using them.
- Platform payment protection. If you buy on a marketplace with escrow, use it and don't agree to move the deal elsewhere.
Fees and limits differ between these options and change often, so ask each provider for its current terms in writing.
Mistakes that make recovery harder
- Paying cash without a receipt.
- Relying on voice notes instead of written terms.
- Deleting chats out of embarrassment.
- Paying more money to "release" the first payment.
- Waiting weeks before reporting.
If you suspect fraud, tell your bank at once, with the transfer details. Then report to the police or the EFCC and keep copies of everything. Be wary of anyone who contacts you afterwards offering to recover the money for a fee; that is a second scam. Our post on fake customs fee and parcel delivery scams covers a related trick that targets importers waiting on goods.
If you are the one receiving payment
Sellers face the opposite risk: fake proof of payment. Confirm money in your own account before releasing goods. Our guide to fake transfer screenshots shows how.
Frequently asked questions
Does an arraignment mean the person is guilty?
No. It means charges have been formally read in court. Guilt is decided at the end of a trial.
Are all BDC operators risky?
No. Many operate properly. The point is to verify who you are dealing with and not rely on documents the dealer hands you.
Can I verify a foreign bank receipt myself?
Not reliably from the image. Ask the receiving party to confirm by email from their official address, and check with your own bank if a transfer went through it.
Does this apply in Ghana, Kenya or South Africa?
The red flags apply anywhere. The regulator differs: check with your own central bank or financial regulator for licensing, not the Nigerian one.
Your next step
Before your next foreign payment, write down the three things you will confirm yourself: the account name, the licence, and the supplier's receipt. If any one is missing, pause the payment.
This article is for general information only and is not financial, legal, or tax advice. Prices, rates and rules change quickly, so check current details before making money decisions.