CBN Dollar Sales to BDCs Shrink Naira Gap to N65 as Official, Parallel Rates Converge
- Nigeria's currency market sees narrowing gap as Central Bank reopens dollar sales to BDCs
- The naira posted weekly gain despite slight depreciation on Friday, reflecting recovery trends
- Increased official dollar supply expected to reduce currency market distortions and enhance stability
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The gap between Nigeria’s official and parallel foreign exchange markets narrowed further on Friday, February 13, 2025, signalling renewed convergence in the currency market after the Central Bank of Nigeria reopened dollar sales to Bureau De Change operators.
The spread between both segments tightened to N65, down from N92 on Wednesday, a 4.6 per cent contraction within two trading sessions.
Source: Getty Images
The move comes as BDC operators prepare to access fresh dollar supply from banks under the apex bank’s revised retail FX framework.
Market watchers say the development reflects improved pricing alignment and tempered speculative activity, even before actual dollar allocations begin in full.
Naira posts weekly gain
Data from the Central Bank of Nigeria showed the naira depreciated slightly by N1.76 on Friday, closing at N1,355.42 per dollar at the Nigerian Foreign Exchange Market, compared to N1,353.66 on Thursday.
Despite the marginal daily dip, the local currency posted a week-on-week gain of N10.77, strengthening from N1,366.19 recorded a week earlier. Across the five trading sessions, the naira edged up by N1.16 from Monday’s opening level of N1,354.26.
At the parallel market, the currency appreciated by N10 to close at N1,420 per dollar, compared to N1,430 on Thursday, reinforcing the convergence trend.
Oil prices and reserves support stability
According to the Financial Market Dealers Association, the naira appreciated by an average of 2.47 per cent in January 2026, trading within the N1,300 range at its strongest level since the second quarter of 2024.
Analysts attributed the improvement to firmer crude oil prices, which climbed above $70 per barrel toward the end of January, and a softer U.S. dollar globally.
Nigeria’s external reserves have also strengthened, rising to $47.53 billion as of February 10, 2026, bolstering the central bank’s capacity to support interventions and sustain retail FX supply.
Policy signalling drives early convergence
Industry operators say the narrowing spread began even before BDCs received dollar allocations, suggesting that the apex bank’s forward guidance alone helped reset market expectations.
Aminu Gwadabe, president of the Association of Bureaux De Change Operators of Nigeria, described the early convergence as evidence that policy communication is yielding results.
He disclosed that BDCs have begun engaging their banks to clarify operational procedures and access modalities.
In a circular dated February 10, the central bank authorised duly licensed BDCs to purchase foreign exchange from the Nigerian Foreign Exchange Market through any authorised dealer bank at prevailing rates.
$150,000 weekly cap and compliance rules
Under the revised framework, authorised dealer banks must conduct full know-your-customer checks and due diligence before selling foreign currency to BDCs.
Sales are restricted to eligible retail transactions, subject to a weekly cap of $150,000 per bureau.
The reform follows the licensing of 82 BDC operators under the new regulatory structure introduced in late 2025 to formalise retail FX distribution and enhance transparency.
Market analysts, including economist Charlie Robertson, say the measure should reduce distortions in the currency market, improve price discovery, and curb speculative pressures.
Source: Getty Images
Operators believe increased access to official supply will narrow the persistent premium between regulated and unregulated segments, strengthen investor confidence, and reinforce the role of BDCs in the country’s FX transmission framework.
With external reserves climbing and dollar supply channels reopening, the convergence between official and parallel markets appears to be gathering pace, offering cautious optimism for sustained exchange rate stability.
Naira rises further in FX markets
Legit.ng earlier reported that the Nigerian naira strengthened against major currencies on Wednesday, February 11, following the Central Bank of Nigeria’s (CBN) decision to allow licensed Bureau de Change (BDC) operators to participate in the official foreign exchange market.
In the Nigerian Foreign Exchange Market (NFEM), the Naira appreciated by N2.07 or 0.15% to N1,348.95 per US dollar from N1,351.02 on Tuesday, February 10.
It also gained N6.46 against the pound sterling to N1,840.11/£1 and N6.36 on the euro to N1,600.13/€1.
Source: Legit.ng
