The Central Bank of Nigeria has approved licensed Bureau De Change operators to participate in the Nigerian Foreign Exchange Market, allowing each BDC to purchase up to $150,000 weekly.
The approval was disclosed in a circular dated February 10, 2026, signed by Dr. Musa Nakorji, Director of the Trade and Exchange Department, and addressed to authorised dealer banks and the general public.
The decision comes as the gap between official and parallel market exchange rates widens, with rates surpassing N90 for the first time in three years.
According to the circular, the policy is designed to boost liquidity in the retail segment of the foreign exchange market and meet the legitimate needs of end users.
The CBN stated that all duly licensed BDCs are allowed to source foreign exchange from the NFEM through any authorised dealer bank at prevailing market rates.
“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,” the bank stated.
Access, however, is conditional. Authorised dealer banks must complete full Know Your Customer and due diligence checks on BDCs, in line with regulations and internal risk frameworks.
FX can only be sold after these checks, and strictly within the $150,000 weekly cap per operator.
“Upon completion of these requirements, foreign exchange may be sold to BDCs for utilisation in line with the existing BDC Guidelines, subject to a maximum of USD150,000 per week for each BDC,” the circular stated.
Along with expanded access, the CBN introduced stricter reporting and settlement rules to discourage speculation and hoarding.
All licensed BDCs are required to submit their returns to the CBN electronically, accurately, and on time, in accordance with existing regulations.
The bank also warned that BDCs must not retain unutilised foreign exchange.
Any unused funds purchased from the market must be returned within 24 hours.
“Any unutilised balances are expected to be sold back to the market within 24 hours,” the CBN said.
“BDCs are not permitted to keep funds purchased from NFEM in their positions.”
Settlement rules were also tightened, with the CBN requiring that all FX transactions by BDCs be processed through settlement accounts held with licensed financial institutions.
Third-party transactions are prohibited, and cash settlement is limited to 25 per cent of each transaction’s value.
The CBN emphasized that existing BDC guidelines remain in effect, reflecting a policy approach that balances wider market participation with stricter oversight to stabilise the foreign exchange market and reduce rate distortions.
