By Abiodun Folarin
WorldStage— The Central Bank of Nigeria (CBN) has issued comprehensive regulatory and operational guidelines to govern the purchase of foreign exchange by Bureau De Change (BDC) operators through Authorised Dealer Banks in the Nigerian Foreign Exchange Market (NFEM), in a move aimed at improving transparency, efficiency and liquidity in the retail foreign exchange market.
The guidelines, conveyed in a circular dated July 15, 2026 and signed by the Director of the Trade and Exchange Department, Aderinola Shonekan, provide the framework for implementing the apex bank’s earlier decision allowing licensed BDCs to source foreign exchange from the NFEM through banks.
According to the CBN, the new framework introduces an electronic platform to facilitate transactions between BDCs and Authorised Dealer Banks while setting out eligibility requirements, purchase procedures, settlement processes, reporting obligations, weekly purchase limits, treatment of unused foreign exchange and compliance responsibilities.
Under the guidelines, only BDCs holding valid and subsisting CBN licences will be eligible to participate in the arrangement. Operators under regulatory sanctions, with suspended licences or restricted operating conditions will not be allowed to access the market until such restrictions are lifted.
The CBN also directed Authorised Dealer Banks to carry out comprehensive Know-Your-Customer (KYC) and Customer Due Diligence (CDD) checks before executing any transaction with a BDC. Banks are required to verify licence status, tax identification, Corporate Affairs Commission registration, beneficial ownership and other regulatory documentation before processing foreign exchange requests.
To streamline transactions, the apex bank said it would operate a centralised FX BDC Purchase Tracker portal through which all BDCs must submit purchase requests electronically. Banks are expected to acknowledge requests within two business hours and communicate approvals or rejections through the portal. Rejections must clearly state the reasons, including incomplete KYC documentation, breach of weekly purchase limits or unresolved compliance issues.
The guidelines further stipulate that all settlements between BDCs and banks, as well as transactions with end-users, must be conducted through licensed financial institutions using registered foreign exchange settlement accounts. Third-party transactions are prohibited, with foreign exchange purchased by BDCs required to be credited only to their registered settlement accounts.
In addition, BDCs are barred from holding unused foreign exchange purchased from the NFEM beyond the stipulated utilisation period. Any unutilised balances must be returned to the market within 24 hours after the utilisation period expires, while details of outstanding balances must be disclosed in subsequent purchase requests.
The CBN also retained mandatory reporting requirements, directing licensed BDCs to submit periodic electronic returns detailing total foreign exchange purchased, sales to end-users, unutilised balances and settlement breakdowns.
The circular warned that violations of the framework would attract regulatory sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Foreign Exchange Act. Sanctions may include monetary penalties, suspension of NFEM access, withdrawal of BDC licences, revocation of Authorised Dealer status for defaulting banks and referral to law enforcement agencies where criminal conduct is suspected.
According to the CBN, the guidelines take immediate effect and are intended to promote transparency, market liquidity and orderly participation in Nigeria’s retail foreign exchange market while ensuring strict compliance by both banks and licensed BDC operators.
