The Central Bank of Nigeria (CBN) has approved the re-entry of licensed Bureau De Change (BDC) operators into the Nigerian Foreign Exchange Market (NFEM), permitting each to buy up to $150,000 weekly.
The approval, contained in a circular dated February 10, 2026, and signed by Dr Musa Nakorji, Director of the Trade and Exchange Department, was addressed to authorised dealer banks and the general public. The move comes amid a widening gap between official and parallel market rates, which recently crossed N90 for the first time in three years.
According to the circular, the policy is aimed at boosting liquidity in the retail segment of the FX market and meeting the legitimate needs of end users. The apex bank stated that all duly licensed BDCs are permitted to source foreign exchange from the NFEM through any authorised dealer bank at the prevailing market rate.
Access, however, is conditional. Authorised dealer banks must conduct full Know Your Customer and due diligence checks on BDCs in line with existing regulations and risk management frameworks before selling FX. Transactions are capped at $150,000 per week per operator.
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The CBN also imposed tighter reporting and settlement rules to curb speculation and hoarding. Licensed BDCs are required to submit returns electronically and on time, while any unused funds purchased must be sold back into the market within 24 hours. Cash settlement is capped at 25 per cent of transaction value, and third-party transactions are prohibited.
The apex bank stressed that existing BDC guidelines remain in force, signalling a policy approach that combines broader market participation with stricter oversight as it seeks to stabilise the foreign exchange market and narrow distortions between official and parallel rates.
This development follows months of complaints from BDC operators, who lamented the near-collapse of their businesses after the suspension of dollar allocations by the CBN. Many operators struggled to meet overhead expenses, pay staff salaries, and comply with licensing requirements amid uncertainty in the retail FX sub-sector.
The latest policy shift is expected to ease liquidity constraints in the retail market, support legitimate FX demand, and reduce pressure on the parallel market.