The Central Bank of Nigeria has moved to recalibrate the retail foreign exchange market, reopening official FX access to licensed Bureau De Change operators while tightening the guardrails around their activities.
Under a new directive, the apex bank approved the re-entry of BDCs into the Nigerian Foreign Exchange Market, allowing them to source dollars through authorised dealer banks at prevailing market rates.
Each operator, however, will be restricted to a maximum weekly purchase of $150,000, with strict conditions governing how the funds are used. The policy shift, contained in a circular signed by the Director of the Trade and Exchange Department, Musa Nakorji, is designed to ease FX supply pressures at the retail end of the market and better serve individuals and small businesses with legitimate foreign exchange needs.
The circular said the move would “deepen market efficiency and ensure broader access to foreign exchange across the economy.”
All CBN-licensed BDCs are now permitted to buy FX from any authorised dealer bank of their choice, but compliance takes centre stage. Banks have been instructed to carry out full Know-Your-Customer and due diligence checks on BDCs before selling FX, reinforcing safeguards against abuse and speculative activity.
To strengthen transparency, the CBN mandated that BDCs submit timely and accurate electronic transaction returns in line with existing regulations. Operators are also barred from holding FX positions; any unused foreign exchange must be sold back into the market within 24 hours.
