CBN Approves $150,000 Weekly FX Access for 82 BDC Operators to Boost Dollar Liquidity
- The CBN has allowed 82 recapitalised BDCs to access up to $150,000 weekly from the NFEM to improve dollar supply in the retail segment
- The move is expected to ease pressure on the parallel market, narrow the gap between official and black-market rates, and support naira stability
- Strict safeguards, including KYC checks and resale of unused FX within 24 hours, have been introduced to prevent abuse and speculation
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Expectations of better foreign exchange (FX) liquidity are rising across Nigeria’s financial markets after the Central Bank of Nigeria (CBN) approved 82 recapitalised Bureau De Change (BDC) operators to access up to $150,000 weekly from the Nigerian Foreign Exchange Market (NFEM).
Industry stakeholders describe the decision as timely and strategic, saying it could help ease dollar shortages in the retail segment, reduce the gap between official and parallel market rates, and boost confidence in the naira.
Source: Getty Images
However, findings by DailyTrust show that access to the dollar supply is limited strictly to the 82 BDC operators that successfully met the new licensing and recapitalisation requirements.
New rules and limited access to FX
Under revised guidelines issued in line with the Banks and Other Financial Institutions Act (BOFIA) 2020, existing BDC operators were required to increase their capital base and reapply for licences under new categories.
Out of all applicants, only 82 operators met the updated conditions and received final approval from the CBN.
Following the completion of the recapitalisation process and improvements in corporate governance structures, the apex bank created a formal channel for these approved operators to buy up to $150,000 weekly through authorised dealer banks at current market rates.
For several months, analysts had pointed out that limited access to foreign exchange, especially for small businesses, travellers, students, and retail importers, was pushing more demand to the parallel market.
By bringing licensed BDCs back into the official FX supply system under stricter rules, the CBN appears to be addressing this imbalance.
Expected impact on dollar supply
Market observers say that while $150,000 per operator may seem small compared to Nigeria’s overall FX demand, the combined effect could be meaningful.
If all 82 operators fully utilise their weekly allocation, more than $12 million could flow into the retail segment each week. Over a month, this could amount to about $50 million targeted at genuine end users.
Analysts believe this steady supply may reduce speculative demand, ease pressure on the parallel market, and help narrow the difference between official and black-market exchange rates.
In recent weeks, the naira has shown signs of stability, supported by improved external reserves and clearer policy direction. Experts say additional liquidity in the retail market could help sustain this positive trend.
Source: UGC
BDCs yet to access CBN’s $150,000 weekly FX window
In a related development, Legit.ng previously reported that BDC operators said they are unable to access the official foreign exchange window introduced by the CBN.
This comes despite the recent improvement in the naira’s performance, which has helped reduce the gap between the official exchange rate and the parallel market rate.
Latest market figures indicate that the naira strengthened by almost 7% within two weeks across both market segments, reaching one of its strongest levels in nearly two years.
Source: Legit.ng
