The Central Bank of Nigeria (CBN) has authorized licensed Bureau De Change operators to resume purchasing foreign exchange from the official market with a weekly limit of $150,000.
This directive, issued on February 10, 2026, aims to improve liquidity in the retail segment and address the legitimate needs of end users.
This policy shift occurs as the premium between the official and parallel market rates surpassed N90 for the first time in three years. By reintegrating these operators, the apex bank seeks to narrow this gap and ensure a more transparent price discovery mechanism across the federation.
Access to the foreign exchange window remains conditional upon thorough due diligence and Know Your Customer checks by authorized dealer banks. These banks must verify the compliance status of each operator against internal risk frameworks before facilitating any weekly currency purchases.
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The circular signed by Director Musa Nakorji noted that “all duly licensed BDCs are allowed to access foreign exchange from the NFEM.” This measure ensures the retail market remains adequately funded while operating under the prevailing market exchange rates.
To discourage currency speculation and hoarding, the regulator has prohibited operators from holding unutilized dollar positions. Any foreign exchange purchased from the official market that is not sold within 24 hours must be returned to the window immediately.
Furthermore, the bank has introduced stricter settlement rules mandating that all transactions be routed through official settlement accounts. Cash transactions are now strictly capped at 25 percent of the total value to maintain a digital trail for all retail sales.
This development follows significant operational challenges for currency dealers who faced insolvency after previous suspensions of dollar allocations. The lack of official funds left many operators unable to meet basic overheads, staff salaries, and mandatory licensing requirements.
Participants must now submit electronic reports to the central bank accurately to monitor market behavior in real time. These reports will help the regulator track the flow of funds and prevent the diversion of foreign exchange to unauthorized channels.
This intervention reflects a broader regulatory effort to stabilize the naira through coordinated market participation and rigorous oversight. Formalizing retail currency trading remains essential for enhancing the overall resilience of the Nigerian financial system and national economy.
