The Central Bank of Nigeria (CBN) has approved the participation of licensed Bureau De Change (BDC) operators in the Nigerian Foreign Exchange Market (NFEM) with a capped weekly dollar allocation, aimed at enhancing foreign exchange (FX) liquidity at the retail level.
A circular issued on February 10, 2026, and signed by Dr. Musa Nakorji, Director of the CBN’s Trade and Exchange Department, directed all authorised dealer banks to permit licensed BDCs to access foreign exchange from the NFEM through any authorised dealer of their choice at prevailing market rates.
Under the new arrangement, each BDC operator will be permitted to purchase up to USD 150,000 per week, a move the apex bank said is designed to bolster liquidity in the retail FX segment and “meet the legitimate needs of end users.”
The circular highlighted that widening disparities between the official and parallel market exchange rates, which at one point exceeded a ₦90 differential, have underscored the urgency of deeper retail market liquidity. This supply boost is expected to help narrow that gap by making more dollars available through the formal channel.
To this end, the CBN stated, “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 circular also emphasised strict transparency and compliance requirements. Authorised dealer banks are required to conduct full Know-Your-Customer (KYC) and due diligence procedures on BDC clients before FX sales. The CBN reiterated that sales must be aligned with existing BDC operational guidelines, with all licensed BDCs mandated to submit accurate electronic returns to the apex bank in accordance with extant regulations.
According to the directive, “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.”
To guard against foreign exchange hoarding or speculative behaviour, the central bank further stipulated that BDCs must not retain unutilised FX purchased from the NFEM. Any undrawn balances must be returned to the market within 24 hours.
Settlement procedures have also been tightened. All FX transactions involving BDCs must be executed through settlement accounts with licensed financial institutions, with third-party dealings expressly prohibited. Additionally, cash settlement is capped at 25% of the value of each transaction, a measure designed to strengthen audit trails and reduce reliance on physical cash.
