The Central Bank of Nigeria (CBN) has approved licensed Bureau De Change (BDC) operators to participate directly in the Nigerian Foreign Exchange Market (NFEM), allowing each operator to buy up to $150,000 weekly.
The development is aimed at boosting liquidity in the retail foreign exchange segment and addressing growing disparities between official and parallel market rates, which recently surged past N90 for the first time in three years.
The directive, contained in a circular dated February 10, 2026, was signed by Dr Musa Nakorji, Director of the CBN’s Trade and Exchange Department, and addressed to authorised dealer banks and the general public.
The apex bank stated that licensed BDCs can source foreign exchange from any authorised dealer bank at prevailing market rates to meet legitimate end-user demands.
However, access comes with strict conditions. Authorised dealer banks are required to conduct full Know Your Customer (KYC) and due diligence checks before selling FX to BDCs.
Purchases are capped at $150,000 per week per operator.
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The CBN also imposed tighter reporting and settlement rules to prevent speculation and hoarding. Licensed BDCs must submit accurate electronic returns, and any unutilised foreign exchange must be returned to the market within 24 hours.
All transactions must be routed through settlement accounts with licensed financial institutions, third-party dealings are prohibited, and cash settlement is capped at 25% of each transaction value.
“This policy ensures broader participation in the foreign exchange market while maintaining strict oversight to stabilise the naira and narrow rate distortions,” the circular stated.
The move comes after BDC operators raised concerns last October over their near-collapse following a suspension of dollar allocations from the CBN.
Operators cited declining revenues, difficulties in paying staff salaries, office rent, licenses, and compliance costs, as well as uncertainties in recapitalization and licensing processes, as major challenges affecting their survival.
With this policy shift, the CBN seeks to revitalise the BDC sector, enhance liquidity in the retail FX market, and curb widening gaps between official and parallel market rates.