The Central Bank of Nigeria (CBN) has approved the participation of licensed Bureau De Change (BDC) operators in the Nigerian Foreign Exchange Market (NFEM), allowing each operator to purchase up to $150,000 weekly.
The approval, which is already making headlines in Nigeria News Today, was conveyed in a circular dated February 10, 2026, signed by the Director of the Trade and Exchange Department, Dr. Musa Nakorji, and addressed to authorised dealer banks and the general public.
The decision comes amid a widening gap between official and parallel market exchange rates, which recently crossed ₦90 for the first time in three years.
What the CBN Circular Says
According to the apex bank, the policy is aimed at improving liquidity in the retail segment of the foreign exchange market and meeting the legitimate needs of end users.
Under the new directive, all duly licensed BDCs are permitted to source foreign exchange from the NFEM through any authorised dealer bank of their choice at the prevailing market rate.
The circular stated:
“To ensure the availability of adequate foreign exchange liquidity in the retail segment of the foreign exchange market to meet the legitimate needs of end users, this is to inform market participants that 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.”
However, access is subject to strict compliance requirements. Authorised dealer banks must conduct full Know Your Customer (KYC) and due diligence checks in line with existing regulatory standards and internal risk frameworks.
Only after completing these checks can foreign exchange be sold to BDCs, and strictly within the weekly cap of $150,000 per operator.
CBN Tightens Reporting and Settlement Rules
Alongside expanded access, the CBN introduced stricter reporting and settlement guidelines aimed at curbing speculation and hoarding.
All licensed BDCs are required to submit electronic returns to the CBN accurately and within stipulated timelines. The apex bank also warned that operators must not retain unutilised foreign exchange positions.
Any unused funds purchased from the market must be resold within 24 hours.
“Any unutilised balances are expected to be sold back to the market within 24 hours. BDCs are not permitted to keep funds purchased from NFEM in their positions,” the circular added.
The CBN further mandated that all foreign exchange transactions by BDCs must be routed through settlement accounts held with licensed financial institutions. Third-party transactions are prohibited, while cash settlements are capped at 25 percent of each transaction value.
The apex bank clarified that existing BDC guidelines remain in force, signalling a policy approach that combines broader market participation with tighter oversight.
Background: BDC Operators’ Struggles
The latest move follows concerns raised in October 2025 that many licensed BDC operators were on the brink of shutting down due to prolonged suspension of dollar allocations from the CBN.
Operators had complained of declining revenues, difficulty meeting overhead costs, staff salaries, licensing requirements, and compliance expenses.
The retail forex sub-sector also faced uncertainty amid ongoing recapitalisation requirements and regulatory reforms.
With this new policy direction, stakeholders will be watching closely to see whether increased liquidity and stricter controls can help stabilise Nigeria’s foreign exchange market.
The Business Bureau will continue to monitor developments as part of its coverage of financial markets and macroeconomic policy in Nigeria News Today.
