The Central Bank of Nigeria (CBN) has approved the participation of licensed Bureau De Change operators in the Nigerian Foreign Exchange Market (NFEM), allowing each BDC to buy up to $150,000 weekly.
The approval is contained in a circular dated February 10, 2026, 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 comes amid a widening gap between official and parallel market rates, which crossed N90 for the first time in three years.
What the CBN circular says
According to the circular, the policy is aimed at boosting liquidity in the retail segment of the FX market and meeting the legitimate needs of end users.
The apex bank said all duly licensed BDCs are permitted to source foreign exchange from the NFEM through any authorised dealer bank at the prevailing market 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, at the prevailing exchange rate,” the bank said.
However, access is conditional. Authorised dealer banks are required to conduct full Know Your Customer and due diligence checks on BDCs in line with existing regulations and internal risk management frameworks.
Only after these checks can FX be sold to BDCs, and strictly within the weekly cap of $150,000 per operator.
- “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 circular stated.
Reporting rules tighten as CBN targets speculation
Alongside wider access, the CBN imposed tighter reporting and settlement rules to curb speculation and hoarding.
All licensed BDCs are required to submit returns to the CBN electronically, accurately and on time, in line with existing regulations.
The bank also warned that BDCs must not hold unutilised foreign exchange positions.
Any unused funds purchased from the market must be sold back within 24 hours.
- “Any unutilised balances are expected to be sold back to the market within 24 hours,” the CBN said, adding that “BDCs are not permitted to keep funds purchased from NFEM in their positions.”
Settlement rules were further tightened, with the CBN mandating that all FX transactions by BDCs must be routed through settlement accounts held with licensed financial institutions.
Third party transactions are prohibited, while cash settlement is capped at 25 per cent of each transaction value.
The CBN said existing BDC guidelines remain in force, signalling a policy approach that combines broader market participation with stricter oversight as it seeks to stabilise the foreign exchange market and narrow rate distortions.
What you should know
In October 2025, Nairametrics reported that the Bureau De Change (BDC) operators lamented that they were close to going out of operations as most of its members were struggling to stay afloat and meet overhead expenses.
- These licensed currency traders attributed this mainly to the suspension of dollar allocation by the CBN to the BDCs, as they struggled to have access to foreign exchange from the official window.
- The operators lamented that with the huge drop in income level, paying staff salaries, office rent, licenses and other compliance expenses has become a major challenge.
This was further compounded by the uncertainty in the retail sub-sector of the forex market, with many of the BDC operators still battling to meet the recapitalization and license processes.
