The Central Bank of Nigeria (CBN) has approved the participation of licensed Bureau De Change (BDC) operators in the Nigerian Foreign Exchange Market (NFEM) to boost liquidity in the retail segment and meet genuine foreign exchange demands.
Under the new policy, each BDC is permitted to purchase up to $150,000 weekly, subject to full compliance with existing operational guidelines governing the sector.
According to a circular issued by the Director of the Trade and Exchange Department, Musa Nakorji, all CBN-licensed BDCs may now source foreign exchange from any Authorised Dealer Bank at prevailing market rates.
The apex bank stated that the measure is designed to enhance efficiency in the foreign exchange market and expand access to FX across different segments of the economy.
To ensure accountability, authorised dealer banks are mandated to carry out strict Know-Your-Customer (KYC) procedures and due diligence before executing any FX transaction involving BDCs.
Additionally, the CBN directed that BDC operators must submit accurate and timely electronic returns in line with regulatory requirements, warning that compliance remains compulsory.
The circular also stipulates that any foreign exchange not utilised must be returned to the market within 24 hours, as BDCs are barred from retaining FX positions sourced from NFEM.
Furthermore, all transactions must be settled through designated accounts with licensed financial institutions, while third-party dealings are prohibited. Cash settlements, the bank said, must not exceed 25 per cent of each transaction value.
The directive signals the CBN’s effort to improve FX availability in the retail market while tightening oversight, a balancing approach aimed at stabilising the market and maintaining financial discipline.
