The Central Bank of Nigeria (CBN) has formally cleared licensed Bureau De Change (BDC) operators to participate directly in the Nigerian Foreign Exchange Market (NFEM), introducing a weekly foreign exchange access limit of $150,000 per operator.
The decision forms part of the apex bank’s broader intervention strategy designed to enhance liquidity within the retail segment of Nigeria’s forex ecosystem and ensure legitimate end-user demands are met efficiently.
Weekly FX Allocation Framework
Under the newly issued directive, each CBN-licensed BDC is eligible to access up to USD150,000 per week. However, utilisation of the allocation must strictly adhere to existing operational regulations governing BDC activities.
The regulatory update was conveyed in an official circular signed by the Director of the Trade and Exchange Department, Dr. Musa Nakorji. The circular authorises all duly licensed BDCs to source foreign exchange through any Authorised Dealer Bank at prevailing market-determined rates.
The apex bank stated that the policy is intended to deepen price discovery mechanisms, improve distribution efficiency, and widen retail-level access to foreign exchange across the economy.
Strict Compliance and Risk Controls
Despite expanding access, the CBN has embedded stringent compliance safeguards into the framework to mitigate systemic risks.
Authorised Dealer Banks are mandated to conduct comprehensive Know-Your-Customer (KYC) verification and due diligence procedures before executing any foreign exchange transaction involving BDCs. The objective is to preserve market integrity while preventing speculative or non-compliant usage of funds.
To reinforce transparency standards, licensed BDCs are required to submit timely and accurate electronic transaction returns in line with extant regulatory provisions.
In addition, the CBN has prohibited BDCs from warehousing foreign exchange obtained under the scheme. Any unused FX must be returned to the market within 24 hours. Holding open FX positions sourced from NFEM is expressly disallowed.
Settlement Restrictions and Transaction Limits
The circular also introduces strict settlement rules. All transactions must be processed exclusively through designated settlement accounts maintained with licensed financial institutions.
Third-party transactions have been banned outright, while cash-based settlements are capped at 25 percent of the total value per transaction. The majority of transactions must therefore move through traceable banking channels.
Market analysts interpret the move as a calibrated balancing act — expanding retail access to foreign currency while maintaining regulatory discipline.
The directive underscores the CBN’s evolving strategy: increasing liquidity in the foreign exchange market without compromising financial stability, risk management standards, or transparency requirements.
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