The Central Bank of Nigeria (CBN) has approved a new foreign exchange policy permitting licensed Bureau De Change (BDC) operators to purchase dollars directly from the Nigerian Foreign Exchange Market (NFEM), subject to a weekly cap of $150,000 per operator.
In a circular signed by the Director of the Trade and Exchange Department, Dr. Musa Nakorji, the apex bank said the measure aims to boost forex supply in the retail segment and meet legitimate demand from individuals and businesses requiring foreign currency for personal and commercial transactions.
Under the directive, duly licensed BDCs may buy foreign exchange from any Authorised Dealer Bank at prevailing market rates. The policy effectively widens their access to supply sources, provided all regulatory guidelines are strictly observed.
The CBN said the intervention is designed to enhance market functionality, deepen liquidity and improve access to foreign exchange nationwide. It added that the framework will strengthen efficiency in the forex market and support economic activities dependent on external payments.
However, the regulator stressed that the access comes with stringent compliance requirements. Banks are mandated to conduct full Know-Your-Customer (KYC) and due diligence checks before executing transactions with BDCs, ensuring that only legitimate operators participate.
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To promote transparency and accountability, all licensed BDCs must render accurate and timely electronic returns in line with existing regulations. The CBN further directed that any foreign exchange purchased but not utilised must be resold into the market within 24 hours, prohibiting operators from holding open positions sourced from NFEM.
The circular also stipulates strict settlement conditions. All transactions must be processed through designated settlement accounts with licensed financial institutions. Third-party dealings are barred, while cash payments must not exceed 25 per cent of the value of each transaction.
In a statement on Tuesday, the CBN described the directive as part of broader reforms to stabilise the foreign exchange market while sustaining robust regulatory oversight. It said the policy balances improved market access with safeguards aimed at preserving financial system integrity.
The bank expressed confidence that the new framework will ease pressure in the retail forex segment, bolster investor and public confidence, and support the orderly functioning of Nigeria’s financial system.
