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 operator to purchase up to $150,000 weekly.
The directive was contained in a circular dated February 10, 2026, and signed by the Director of the Trade and Exchange Department, Dr Musa Nakorji. It was addressed to authorised dealer banks and the general public.
According to the CBN, the move is aimed at boosting foreign exchange liquidity in the retail segment of the market and meeting the legitimate needs of end users. The decision comes amid a widening gap between official and parallel market exchange rates.
“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 stated.
The apex bank, however, directed authorised dealer banks to conduct full Know-Your-Customer (KYC) and due diligence checks in line with regulatory requirements and internal risk management frameworks before selling foreign exchange to BDCs.
Upon completion of these checks, banks may sell foreign exchange to BDCs in line with existing operational guidelines, subject to a maximum of $150,000 per week for each operator.
To strengthen transparency, the CBN mandated all licensed BDCs to submit timely and accurate electronic returns in accordance with extant regulations.
The bank also barred BDCs from holding unutilised foreign exchange, warning that any unused balances must be resold into the market within 24 hours. “BDCs are not permitted to keep funds purchased from NFEM in their positions,” the circular stated.
Additionally, the CBN directed that all foreign exchange transactions be settled through accounts held with licensed financial institutions. Third-party transactions are prohibited, while cash settlements are limited to 25 per cent of each transaction amount.
The latest directive signals a shift toward expanding market access for BDCs while maintaining tight regulatory oversight as the CBN seeks to stabilise and deepen the foreign exchange market.
