CBN okays $150,000 weekly FX sales to BDCs

The Central Bank of Nigeria (CBN) has authorised licensed Bureau De Change (BDC) operators to participate in the Nigerian Foreign Exchange Market (NFEM), permitting each BDC to purchase up to $150,000 weekly.

The directive, dated February 10, 2026, was conveyed in a circular signed by the Director of the Trade and Exchange Department, Dr Musa Nakorji, and addressed to authorised dealer banks and the general public.

The move is aimed at boosting foreign exchange liquidity in the retail segment of the market and meeting the legitimate needs of end users, while also narrowing the widening gap between official and parallel market exchange rates, which recently exceeded a N90 margin for the first time in three years.

According to the circular, all duly licensed BDCs may access foreign exchange through any authorised dealer of their choice at the prevailing exchange rate.

“To ensure the availability of adequate foreign exchange liquidity in the retail segment of the foreign exchange market to meet the legitimate needs of end users, this is to inform market participants that all BDCs that are duly licensed by the CBN are allowed to access foreign exchange from the NFEM through any Authorised Dealer of their choice,” the CBN stated.

The apex bank, however, directed authorised dealer banks to conduct full Know-Your-Customer (KYC) and due diligence checks on BDC clients before executing any foreign exchange transactions.

“Authorised dealers are required to complete the necessary KYC and due diligence for their BDC clients in line with applicable regulations and the internal risk management framework,” the circular read.

It added that once these requirements are met, authorised dealers may sell foreign exchange to BDCs in line with existing operational guidelines, subject to the weekly cap.

“Upon completion of these requirements, foreign exchange may be sold to BDCs for utilisation in line with the existing BDC Guidelines, subject to a maximum of USD150,000 per week for each BDC,” the bank noted.

The CBN also introduced strict reporting and transparency measures, directing all licensed BDCs to submit timely and accurate electronic returns in accordance with existing regulations.

To curb hoarding and speculative practices, the bank warned that BDCs must not retain unutilised foreign exchange purchased from the market.

“Any unutilised balances are expected to be sold back to the market within 24 hours. BDCs are not permitted to keep funds purchased from NFEM in their positions,” the circular stated.

In addition, the CBN tightened settlement procedures, mandating that all foreign exchange transactions be conducted through settlement accounts with licensed financial institutions.

“Settlement of foreign exchange transactions by BDCs with Authorised Dealers and/or with end user customers shall be conducted exclusively through settlement accounts held with licensed financial institutions,” it said.

The circular also prohibited third-party transactions and limited cash settlements to a maximum of 25 per cent of each transaction value.

The CBN stressed that existing BDC guidelines remain in force, underscoring a combination of expanded market access and stricter regulatory oversight as part of efforts to stabilise and deepen Nigeria’s foreign exchange market.