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Home Currencies

CBN Reopens Official FX Window to Licensed BDCs with $150,000 Weekly Purchase Cap

Stephen Akudike by Stephen Akudike
February 12, 2026
in Currencies, Economy
Reading Time: 2 mins read
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CBN – FG incurred N930.8bn Fiscal Deficit in January and February 2023.
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The Central Bank of Nigeria (CBN) has granted licensed Bureau De Change (BDC) operators renewed access to the Nigerian Foreign Exchange Market (NFEM), allowing each eligible BDC to purchase up to $150,000 per week directly from authorised dealer banks.

The policy, contained in a circular dated February 10, 2026, and signed by Dr Musa Nakorji, Director of the Trade and Exchange Department, takes immediate effect and aims to increase retail FX liquidity and better meet legitimate end-user demand.

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According to the circular, all duly licensed BDCs may now source foreign exchange from the NFEM through any authorised dealer bank at the prevailing market rate, subject to strict conditions:

– Authorised dealer banks must complete full Know Your Customer (KYC) and due diligence checks on each BDC in line with existing regulations and internal risk frameworks.
– FX may only be sold to BDCs for utilisation in accordance with current BDC Guidelines.
– The weekly cap is fixed at $150,000 per operator — no exceptions.

The CBN has imposed additional safeguards to prevent speculation and hoarding:

– BDCs must submit accurate, timely electronic returns to the CBN.
– Any unutilised FX purchased from the NFEM must be sold back into the market within 24 hours — BDCs are prohibited from holding idle positions.
– All transactions must be routed through settlement accounts held with licensed financial institutions.
– Cash settlement is limited to 25% of each transaction value; third-party transactions are banned.

The circular stresses that existing BDC Guidelines remain fully in force, combining wider market participation with tighter oversight to stabilise the foreign exchange system and narrow rate distortions between official and informal segments.

The decision follows prolonged complaints from BDC operators, who had been largely excluded from official FX allocations since late 2023. In October 2025, the Association of Bureau De Change Operators of Nigeria (ABCON) warned that many members were struggling to cover salaries, rent, licences, and compliance costs, with some on the brink of closure due to lack of access to wholesale dollars.

Today’s policy shift is widely seen as a response to those pressures and an attempt to restore functionality to the retail FX segment while maintaining regulatory control. The $150,000 weekly limit per BDC is intended to ensure broad distribution of liquidity without creating concentrations that could fuel speculation.

Market analysts expect the move to help ease supply shortages in the informal market, reduce the official–parallel premium (recently above 6%), and support greater price convergence. However, strict reporting, settlement, and utilisation rules will be closely enforced to prevent abuse.

The CBN reiterated that the measure is designed to strengthen overall FX market efficiency and transparency while continuing to protect the integrity of the official window. BDCs and authorised dealer banks have been directed to comply fully with the new framework, with immediate effect.

Tags: BDCCBN
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