CBN Approves BDCs’ Return To Forex Market, Allows Purchase Of Up To $150,000 Weekly
The Central Bank of Nigeria (CBN) has authorised licensed Bureau De Change (BDC) operators to resume participation in the Nigerian Foreign Exchange Market (NFEM), in a move aimed at improving liquidity and enhancing access to foreign exchange in the retail segment.
The approval was contained in a circular signed by the Director of the Trade and Exchange Department, Dr Musa Nakorji. The circular stated that each licensed BDC is permitted to purchase up to $150,000 weekly, subject to compliance with existing operational guidelines.
Under the new arrangement, BDCs are allowed to source foreign exchange from any authorised dealer bank at prevailing market rates. The CBN said the measure is designed to improve market efficiency and expand access to foreign exchange across the economy.
However, the apex bank introduced strict compliance and risk management requirements. It directed authorised dealer banks to conduct thorough Know-Your-Customer (KYC) and due diligence checks before processing any FX transactions for BDCs.
To strengthen transparency and accountability, all licensed BDCs are required to submit accurate and timely electronic returns in line with existing regulations. The circular also stipulated that any foreign exchange not utilised must be resold to the market within 24 hours, as BDCs are prohibited from holding FX positions sourced from the NFEM.
In addition, the CBN imposed limits on settlement procedures, directing that all transactions must be executed through settlement accounts with licensed financial institutions. Third-party transactions were prohibited, while cash settlements were capped at 25 per cent of each transaction.
The apex bank said the measures form part of its broader strategy to balance improved market access with strong regulatory oversight, while safeguarding financial system stability.
