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By Daniel Adaji
The Central Bank of Nigeria (CBN) has approved the participation of licensed Bureau De Change (BDC) operators in the Nigerian Foreign Exchange Market (NFEM), allowing each BDC to purchase up to USD 150,000 weekly.
This is aimed at enhancing liquidity in the retail segment of the market.
According to a circular signed by Dr. Musa Nakorji, Director of the Trade and Exchange Department at the CBN, all duly licensed BDCs are now permitted to access foreign exchange through any Authorised Dealer Bank of their choice at prevailing market rates. The circular states that the policy “aims to deepen market efficiency and ensure broader access to foreign exchange across the economy.”
The move comes amid persistent concerns over foreign exchange scarcity in Nigeria, which has often fueled parallel market activities and limited access for legitimate end users. The CBN seeks to streamline FX distribution while maintaining regulatory oversight by allowing BDCs to participate in the NFEM.
The apex bank emphasised strict compliance measures, noting that Authorised Dealer Banks must conduct full Know-Your-Customer (KYC) and due diligence checks before selling foreign exchange to BDCs.
“All BDCs must submit timely and accurate electronic returns in line with extant regulations,” the circular added, underscoring the need for transparency and accountability.
Under the directive, any unutilised foreign exchange must be sold back to the market within 24 hours, as BDCs are prohibited from holding FX positions purchased from the NFEM. Additionally, all transactions must be settled through accounts with licensed financial institutions; third-party dealings are prohibited, while cash settlement is capped at 25 per cent of each transaction.
“The new framework ensures that licensed BDCs can meet the legitimate needs of end users,” the circular added.