The Central Bank of Nigeria (CBN) has officially readmitted licensed Bureau De Change (BDC) operators into the Nigerian Foreign Exchange Market (NFEM), allowing each operator to purchase up to $150,000 weekly through authorised dealer banks.
The decision, announced in a circular dated February 10, 2026, and signed by Dr. Musa Nakorji, the Director of the Trade and Exchange Department, marks a significant policy shift aimed at improving liquidity in the retail end of the foreign exchange market.
The move comes at a delicate moment, as the gap between the official and parallel market exchange rates widened to over N90, the highest spread recorded in three years.
According to the CBN, the policy is designed to “ensure the availability of adequate foreign exchange liquidity in the retail segment” and meet the legitimate needs of end users.
Under the new arrangement:
- All duly licensed BDCs may source FX from the NFEM
- Purchases must be made through authorised dealer banks
- Transactions will occur at prevailing market rates
- Each BDC is capped at $150,000 weekly
The apex bank stressed that access will be subject to strict Know Your Customer (KYC) and due diligence checks by participating banks.
“Upon completion of these requirements, foreign exchange may be sold to BDCs… subject to a maximum of USD150,000 per week for each BDC,” the circular stated.
While widening access, the CBN simultaneously introduced tougher safeguards to prevent hoarding and speculative round-tripping.
Key restrictions include:
- Mandatory electronic submission of returns
- Unused FX must be resold within 24 hours
- BDCs are prohibited from holding FX positions
- All transactions must pass through settlement accounts
- Third-party transactions are banned
- Cash settlement limited to 25 per cent per transaction
“Any unutilised balances are expected to be sold back to the market within 24 hours,” the CBN warned.
The measures signal a calibrated approach, expanding participation while tightening supervision.
The re-entry of BDCs into the official window is widely seen as an attempt to:
- Reduce pressure on the parallel market
- Narrow the exchange rate gap
- Improve price discovery
- Restore confidence in the FX framework
Since the suspension of dollar allocations in 2025, many licensed BDCs have struggled to survive. Operators had warned that income collapse, rising compliance costs and recapitalisation requirements were pushing many to the brink.
In October 2025, industry leaders lamented that paying salaries, office rent and licensing fees had become increasingly difficult amid restricted access to official forex supply.
The exclusion of BDCs had inadvertently strengthened the informal FX market, widening distortions between official and street rates.
