•Move aimed at narrowing N90 gap between official and parallel markets
•Apex bank mandates 24-hour sell-back rule for unutilised funds
• BDCs required to undergo fresh KYC checks by dealer banks
The Central Bank of Nigeria (CBN) has approved the return of licensed Bureau De Change (BDC) operators to the Nigerian Foreign Exchange Market (NFEM). Under the new directive, each licensed BDC is now permitted to purchase up to $150,000 weekly.
The approval, which ends a period of exclusion that had pushed many operators to the brink of collapse, was contained in a circular dated February 10, 2026. The document, signed by Dr. Musa Nakorji, Director of the Trade and Exchange Department, was addressed to all authorized dealer banks and the general public.
Boosting Retail Liquidity
The apex bank stated that the primary objective of this intervention is to enhance liquidity within the retail segment of the market and ensure that legitimate end-users—such as small-scale importers and travelers—can access foreign currency more easily.
“To ensure the availability of adequate foreign exchange liquidity… all BDCs that are duly licensed by the CBN are allowed to access foreign exchange from the NFEM through any Authorised Dealer of their choice, at the prevailing exchange rate,” the circular read.
Market analysts note that the move comes at a critical time. The premium between the official exchange rate and the parallel market has recently widened to over N90, the largest gap recorded in three years. By flooding the retail segment with $150,000 per BDC weekly, the CBN hopes to exert downward pressure on the black market rate.
Stringent Oversight and Reporting
Learning from past challenges regarding speculation, the CBN has attached strict conditions to this new window. Authorized dealer banks are mandated to conduct comprehensive Know Your Customer (KYC) and due diligence checks on every BDC before a transaction is approved.
Furthermore, the CBN has effectively banned “dollar hoarding.” According to the new rules:
24-Hour Rule, Any unutilised foreign exchange must be sold back to the market within 24 hours. BDCs are prohibited from holding open positions overnight, Operators must submit electronic returns accurately and on time to the CBN.
Cash settlements for forex transactions are now capped at 25%, with the remainder required to be processed through electronic settlement accounts. Third-party transactions remain strictly prohibited.
Industry Relief
The news has been met with relief by the BDC community. In October 2025, operators had warned that the sector was facing an existential crisis. Following the suspension of dollar allocations, many firms struggled to meet overhead costs, pay staff salaries, or maintain office rents.
“The uncertainty in the retail sub-sector was reaching a breaking point,” said a Lagos-based operator. “This $150,000 weekly window provides the liquidity we need to stay afloat and, more importantly, it brings the market back into a formal structure.”
While the CBN’s existing BDC guidelines remain in force, this latest circular signals a more proactive approach to closing rate distortions and curbing the influence of the informal currency market.
