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BREAKING: CBN Allows BDCs Back into FX Market, Sets $150,000 Weekly Purchase Limit

The Central Bank of Nigeria has approved the participation of licensed Bureau De Change operators in the foreign exchange market.

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  • The Central Bank of Nigeria has approved the participation of licensed Bureau De Change operators in the foreign exchange market, allowing each BDC to buy up to $150,000 weekly under strict conditions.
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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 per week.

The directive was contained 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.

According to the apex bank, the decision is aimed at improving foreign exchange liquidity in the retail segment of the market and meeting the legitimate needs of end users. The move is also expected to help narrow the widening gap between official and parallel market exchange rates, which recently exceeded N90 for the first time in three years.

“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, all BDCs 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 stated.

The CBN stressed that authorised dealer banks must conduct full Know-Your-Customer (KYC) and due diligence checks on BDC clients before selling foreign exchange to them, in line with existing regulations and internal risk management frameworks.

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Upon completion of these requirements, authorised dealers may sell foreign exchange to BDCs strictly in accordance with existing operational guidelines, subject to a maximum weekly limit of $150,000 per BDC.

The apex bank also imposed strict reporting and transparency obligations, directing all licensed BDCs to submit timely and accurate electronic returns to the CBN in line with extant regulations.

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To curb speculation and hoarding, the CBN warned that BDCs must not retain unutilised foreign exchange purchased from the market. Any unused balances must be sold back to the market within 24 hours, as BDCs are not permitted to hold foreign exchange positions.

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In addition, the bank tightened settlement rules, mandating that all foreign exchange transactions by BDCs be conducted exclusively through settlement accounts held with licensed financial institutions. Third-party transactions were prohibited, while cash settlement was capped at a maximum of 25 per cent of each transaction value.

The CBN emphasised that existing BDC operational guidelines remain fully applicable, signalling a combination of wider market access and strict regulatory oversight as it seeks to stabilise and deepen Nigeria’s foreign exchange market.

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