ABUJA, — The Central Bank of Nigeria (CBN) has allowed licensed Bureau De Change (BDC) operators back into the Nigerian Foreign Exchange Market (NFEM), with each BDC now permitted to purchase up to $150,000 weekly through authorized dealer banks, according to a new circular.
The directive, signed by Dr. Musa Nakorji, Director of the CBN’s Trade and Exchange Department, says all duly licensed BDCs may source FX from any authorized dealer at prevailing market rates. The bank said the move is intended to improve retail-market liquidity and meet legitimate end-user demand.
To limit misuse, the CBN paired broader access with tighter controls. Authorized dealers must conduct full KYC and due-diligence checks before selling to BDCs. Licensed BDCs are also required to file timely electronic returns, while any unutilized FX purchased from NFEM must be sold back within 24 hours, effectively banning position-hoarding from this window.
The circular also narrows settlement channels: transactions must pass through settlement accounts in licensed financial institutions; third-party settlement is disallowed; and cash settlement is limited to 25% of each transaction. Those provisions signal a compliance-first reopening rather than a full deregulation of BDC behavior.
This latest step fits into the CBN’s broader FX restructuring path. NFEM is now the official unified market benchmark, and the central bank has been tightening BDC licensing and supervision after revoking thousands of licenses in 2024 and later issuing a smaller set of fresh approvals under revised rules.
Market impact will depend on execution. In the near term, easier access for compliant BDCs could improve retail dollar availability and reduce pressure in informal channels. But the weekly cap, 24-hour resale requirement for unused FX, and strict reporting obligations mean liquidity gains are likely to be controlled rather than open-ended.
For households and small businesses, the practical question is pass-through: whether improved BDC access translates into steadier availability and narrower spreads at the retail end. That will hinge on how many licensed operators actively participate and how consistently banks supply them under the new framework.
