The Central Bank of Nigeria has approved the participation of licensed Bureau De Change operators in the Nigerian Foreign Exchange Market, allowing each BDC to purchase up to $150,000 weekly, according to a circular issued by the apex bank on Tuesday.
The directive, dated February 10, 2026, was contained in a circular signed by the Director of the Trade and Exchange Department, Dr Musa Nakorji, and addressed to authorised dealer banks and the general public.
This move is expected to narrow the gap between official and parallel market rates, which widened by over N90 for the first time in three years.
In the circular, the Central Bank of Nigeria said the move was aimed at improving foreign exchange liquidity in the retail segment of the market and meeting the legitimate needs of end users.
“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 stated.
The apex bank added that authorised dealer banks must carry out full Know-Your-Customer and due diligence checks on BDC clients before selling foreign exchange to them.
“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,” the circular read.
It explained that upon completion of these requirements, foreign exchange could be sold to BDCs strictly in line with existing operational rules, but subject to a weekly limit.
“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 CBN said.
The bank also imposed strict reporting and transparency requirements, directing that “all licensed BDCs shall ensure the timely and accurate submission of returns to the Central Bank electronically, and in accordance with extant regulations.”
To prevent hoarding and speculative positions, the CBN warned that BDCs must not retain unutilised foreign exchange purchased from the market.
“Any unutilised balances are expected to be sold back to the market within 24 hours,” the circular stated, adding that “BDCs are not permitted to keep funds purchased from NFEM in their positions.”
The apex bank further tightened settlement rules, mandating that all foreign exchange transactions by BDCs be routed through settlement accounts with licensed financial institutions.
“Settlement of foreign exchange transactions by BDCs with Authorised Dealers and/or with end user customers shall be conducted exclusively through settlement accounts held with licensed financial institutions,” it said.
It also barred third-party transactions and limited cash settlement, noting that “third-party transactions are prohibited, and settlement of foreign exchange sales in cash is limited to a maximum of 25 per cent of each transaction amount.”
The CBN stressed that existing BDC guidelines would continue to apply to all transactions, signalling a blend of wider market access and strict regulatory oversight as it seeks to stabilise and deepen the foreign exchange market.
Earlier in October 2025, The PUNCH reported that the President of the Association of Bureau De Change Operators of Nigeria, Aminu Gwadebe, raised concerns about the hardship that BDC operators face in accessing dollars for their operations.
In a chat with PUNCH Online, Gwadebe said that following the CBN’s suspension of dollar sales to BDCs, operators have to rely on walk-in customers to obtain dollars.
Earlier in 2025, PUNCH Online also reported that the CBN issued new guidelines restricting Bureau de Change operators to purchasing a maximum of $25,000 per week from a single authorised dealer bank as part of efforts to regulate the retail foreign exchange market and enhance transparency. However, with the suspension, they have not been able to source dollars from banks.
