February 10, (THEWILL) — The Central Bank of Nigeria (CBN) has approved the participation of licensed Bureau De Change (BDC) operators in the Nigerian Foreign Exchange Market (NFEM) as part of efforts to improve foreign exchange liquidity in the retail segment of the market and meet the legitimate needs of end users.
Under the new directive, the CBN has approved that weekly FX purchases by each BDC be capped at $150,000, and that utilization must comply with existing BDC operational guidelines.
In a circular signed on Tuesday, February 10, 2026, by the Director of the Trade and Exchange Department, Nakorji Musa, the apex bank stated that all BDCs duly licensed by the CBN are permitted to access foreign exchange through any Authorized Dealer Bank (ADB) of their choice at the prevailing market rates.
The move aims to deepen market efficiency and ensure broader access to foreign exchange across the economy.
The CBN, however, imposed strict compliance and risk-management conditions on the transactions. Authorized dealers are required to conduct full Know-Your-Customer (KYC) and due diligence checks on BDC clients before any FX sale.
To strengthen transparency and accountability, the CBN directed that all licensed BDCs must submit timely and accurate electronic returns in line with extant regulations.
Any unutilized foreign exchange must be sold back to the market within 24 hours, as BDCs are prohibited from holding FX positions purchased from the NFEM.
The circular further restricts settlement practices, mandating that all FX transactions be conducted through settlement accounts with licensed financial institutions.
Third-party transactions are prohibited, while cash settlement is limited to a maximum of 25 percent of each transaction amount.
Overall, the directive reflects the CBN’s broader strategy to balance market access with strong regulatory oversight, ensuring liquidity in the foreign exchange market while safeguarding financial system integrity.
The policy follows a significant restructuring in 2025 that saw the licensing of a new batch of 82 BDCs under a stricter two-tiered regulatory framework.
