The Central Bank of Nigeria (CBN) has granted licensed Bureau De Change (BDC) operators direct access to the Nigerian Foreign Exchange Market (NFEM), permitting each BDC to purchase up to $150,000 per week from authorised dealer banks, a policy analysts say will improve retail FX liquidity and exert further upward pressure on the naira.
Announced in a circular dated February 10, 2026 and signed by Dr Musa Nakorji, Director of the Trade and Exchange Department, the measure allows BDCs to source dollars at the prevailing NFEM rate after completing full Know Your Customer (KYC) and due diligence checks by their bank.
The CBN stated that the policy aims to “boost liquidity in the retail segment of the foreign exchange market and meet the legitimate needs of end users.” It follows months of complaints from BDC operators who had been largely cut off from official allocations, forcing many to operate at reduced capacity or close shop.
Tunde Amolegbe, CEO of Arthur Stevens Asset Management, welcomed the change, forecasting continued naira strengthening. “Expect further appreciation against the US dollar,” he said. “A firmer currency will lower input costs for companies reliant on foreign-denominated raw materials, especially in consumer goods and industrial sectors.”
Ayotunde Olubunmi, Head of Financial Institutions at Agusto & Co., described the move as part of the CBN’s broader strategy to tackle distortions in the FX market. “Increasing liquidity in the BDC segment should reduce speculative pressure and arbitrage opportunities,” he noted. “This is expected to moderate the premium between official and parallel rates.”
Tilewa Adebajo, CEO of CFG Advisory, emphasised the importance of expanding FX distribution channels. “Availability of forex through more channels is helping with rate stabilisation,” he said.
To prevent abuse, the CBN imposed strict safeguards:
– All BDC transactions must be routed through settlement accounts at licensed banks; third-party deals are prohibited.
– Cash settlement is capped at 25% of each transaction value.
– BDCs must return any unutilised FX to the market within 24 hours and are barred from holding idle positions.
– Timely, accurate electronic returns must be submitted to the CBN in line with existing regulations.
The policy arrives as the official–parallel premium has narrowed in recent weeks but remains elevated, reflecting ongoing demand pressures outside regulated channels. Analysts expect the additional liquidity to help close the gap further and support the naira’s recent gains.
The move follows prolonged lobbying by BDC operators, who had warned that restricted access to official dollars threatened their viability and pushed many transactions into informal channels. With the $150,000 weekly cap per operator, the CBN aims to distribute liquidity widely while maintaining tight oversight.
Market observers will monitor compliance closely in the coming weeks. If BDCs adhere to the reporting, settlement, and utilisation rules, the policy could mark a turning point in stabilising the retail FX segment and reinforcing the naira’s recent strength.
