The Central Bank of Nigeria (CBN) has approved renewed access for licensed Bureau De Change (BDC) operators to participate in the Nigerian Foreign Exchange Market (NFEM).
The directive, issued via an official circular dated February 10, 2026, forms part of the apex bank’s broader strategy to enhance liquidity within the retail foreign exchange segment and improve price discovery across the market.
Under the new framework, duly licensed BDCs are allowed to source foreign exchange directly from authorised dealers at prevailing market rates.
However, access is strictly capped at a maximum of $150,000 weekly per operator, reinforcing a controlled supply mechanism.
The central bank also introduced enhanced compliance requirements. Authorised dealer banks must conduct full Know-Your-Customer (KYC) verification and due diligence procedures before executing foreign exchange sales to BDCs.
This measure is intended to strengthen transparency and mitigate abuse within the retail FX ecosystem.
To prevent speculative accumulation, the regulator directed that any foreign exchange not deployed for approved transactions must be returned to the market within 24 hours. BDCs are prohibited from retaining unused balances for trading positions.
In addition, all transactions must be processed exclusively through settlement accounts held with licensed financial institutions.
Third-party transactions have been disallowed, while cash settlements are restricted to a limited percentage of each transaction value. These safeguards signal a dual approach of widening access while tightening regulatory oversight.
Market analysts note that the decision could help moderate volatility between official and parallel market exchange rates by channeling additional liquidity into the retail space.
Over recent months, the spread between both markets had widened significantly, reflecting supply-demand imbalances.
The latest move also marks a shift in the central bank’s engagement with BDC operators following earlier restrictions that limited their access to formal dollar supply channels.
Industry stakeholders had previously raised concerns about sourcing constraints and operational sustainability.
By reintroducing a structured access window under defined compliance conditions, the apex bank appears focused on stabilising the retail FX segment without compromising regulatory discipline.
The combination of capped access, strict reporting obligations, and rapid re-sale requirements suggests an attempt to curb hoarding while improving supply distribution.
The development is expected to influence short-term liquidity conditions and could contribute to narrowing exchange rate differentials if effectively implemented.
Market participants will closely monitor weekly uptake volumes and reporting compliance as the framework takes effect.
