- Safiu Kehinde
The Central Bank of Nigeria (CBN) has approved the weekly sales of $150,000 exchange to licensed Bureau De Change (BDC) operators and participation in the Nigerian Foreign Exchange Market (NFEM).
This was announced in a circular signed by the Director, Trade and Exchange Department, Dr Musa Nakorji/
The move is considered part of the CBN’s efforts to improve foreign exchange liquidity in the retail segment of the market.
However, the apex bank held that the utilisation must comply with existing BDC operational guidelines.
“All BDCs duly licensed by the CBN are permitted to access foreign exchange through any Authorised Dealer Bank of their choice, at the prevailing market rates.
“The move aims to deepen market efficiency and ensure broader access to foreign exchange across the economy,” it said.
The CBN further imposed strict compliance and risk-management conditions on the transactions.
It said that authorised dealers were required to conduct a full Know-Your-Customer (KYC) and due diligence checks on BDC clients before any FX sale.
To strengthen transparency and accountability, the apex bank directed that all licensed BDCs must submit timely and accurate electronic returns in line with extant regulations.
It added, “Any unutilised foreign exchange must be sold back to the market within 24 hours, as BDCs are prohibited from holding FX positions purchased from the NFEM.”
The circular further restricts settlement practices, mandating that all FX transactions be conducted through settlement accounts with licensed financial institutions.
It said that third-party transactions were prohibited, while cash settlement is limited to a maximum of 25 per cent of each transaction amount.
“Overall, the directive reflects the CBN’s broader strategy to balance market access with strong regulatory oversight, ensuring liquidity in the foreign exchange market while safeguarding financial system integrity.”