CBN Grants BDCs Access to Dollar In Official Forex Market, Sets Transaction Limit
- The Central Bank of Nigeria has announced that BDCs can now buy dollars from the official market
- The move will help improve retail market supply, ease pressures, and be a big boost for naira limits
- Some rules must be followed by the BDCs, which include no third-party transactions
- In an exclusive chat with Legit.ng Aminu Gwadabe, ABCON president, welcomed the development and believes it will help the value of the naira
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Central Bank of Nigeria (CBN) has introduced a new foreign exchange (FX) policy limiting licensed Bureau De Change (BDC) operators to a weekly purchase of $150,000 each from the Nigerian Foreign Exchange Market (NFEM).
This was disclosed in a circular, signed by Dr. Musa Nakorji, Director of the Trade and Exchange Department rleased on Tuesday, February 10.
In the cirular CBN said the measure is aimed to improve the supply of foreign currency in the retail market and meet the legitimate needs of Nigerians for personal and business purposes.
Source: Twitter
CBN announces changes to dollar sales
Under the directive, all properly licensed BDCs can now source foreign exchange from any Authorised Dealer Bank at prevailing market rates.
This removes previous restrictions on supply channels, giving operators more flexibility while adhering to CBN regulations.
Part of the CBN circular reads:
“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."
To prevent abuse, the CBN requires banks selling FX to BDCs to conduct full Know-Your-Customer (KYC) and due diligence checks.
All licensed BDCs must also submit accurate electronic returns and resell any unused foreign exchange within 24 hours.
Source: Facebook
Additionally, the CBN placed limits on transaction settlements. All FX dealings must go through settlement accounts with licensed financial institutions, third-party transactions are banned, and cash payments cannot exceed 25% of any transaction’s value.
CBN added:
"Settlement of foreign exchange transactions by BDCs with Authorised Dealers and/or with end user customers shall be conducted exclusively through settlement accounts held with licensed financial institutions. Third-party transactions are prohibited, and settlement of foreign exchange sales in cash is limited to a maximum of 25% of each transaction amount.
"The existing BDC guidelines apply to all transactions."
ABCON welcomes development
Speaking to Legit.ng on the new directive, Aminu Gwadabe, President of the Association of Bureau De Change Operators of Nigeria (ABCON), described it as good news for operators and said he believes it will positively impact the stability of the naira.
His words:
“The recent clarification by the CBN allowing BDC operators access to the NFEM window through deposit money banks is highly commendable and a clear statement of the CBN’s commitment to enhancing financial inclusion, increasing liquidity at the critical retail end of the market, and reducing the wide margin between the NFEM and the unregulated market.
"On behalf of our members, we thank the CBN management for their clarity, support, inclusiveness, and consistent guidance.”
Foreign reserves rise
Earlier, Legit.ng reported that Nigeria’s external reserves recorded a modest but significant increase at the end of January, rising by $66 million to $46.11 billion.
The 1.6% month-on-month gain from $45.45 billion in December 2025 offers renewed support for the country’s foreign exchange buffers, following months of pressure driven by global volatility and domestic FX demand.
The improvement comes at a time when the naira is enjoying its strongest run in nearly two years.
Source: Legit.ng
