The Central Bank of Nigeria (CBN) has announced a major shift in its foreign exchange policy, granting licensed bureaux de change (BDCs) renewed access to the official market as the gap between official and parallel market rates continues to widen.
Under the new directive, each licensed BDC is permitted to purchase up to $150,000 per week at prevailing market rates through authorised dealer banks. The move is aimed at boosting dollar liquidity in the retail segment and easing sustained pressure in the parallel market.
The decision was contained in a circular issued by the CBN’s Trade and Exchange Department and signed by its director, Musa Nakorji. It applies to all duly licensed BDC operators across the country.
For years, BDCs were excluded from direct access to official foreign exchange amid concerns over speculation, round-tripping and weak transparency. Their re-entry into the official market signals a recalibration of the apex bank’s strategy as it seeks to stabilise the naira and improve retail access to dollars.
By allowing BDCs to source foreign exchange from authorised dealer banks, the CBN hopes to channel more dollars into legitimate retail transactions such as travel allowances, school fees, medical bills and other personal obligations.
Market analysts say the policy could help narrow the disparity between official and black market rates if implemented effectively and backed by sufficient dollar supply.
“All BDCs duly licensed by the CBN are permitted to access foreign exchange through any authorised dealer bank of their choice, at prevailing market rates,” the circular stated.
While reopening access, the CBN has imposed tight compliance measures to curb abuse and speculation.
Authorised dealer banks are required to conduct full know-your-customer (KYC) checks and carry out due diligence before selling foreign exchange to BDCs. This reinforces the regulator’s emphasis on transparency and anti-money laundering safeguards.
To discourage hoarding, BDCs are prohibited from maintaining open foreign exchange positions. Any foreign currency purchased but not utilised must be resold into the market within 24 hours.
In addition, licensed operators must submit accurate and timely electronic returns in line with existing reporting regulations.
All transactions must be processed through settlement accounts with licensed financial institutions, and third-party transactions are strictly banned.
Cash settlements are also restricted. Physical cash transactions cannot exceed 25 per cent of the value of each deal, a measure designed to limit heavy cash circulation in the FX market.
The directive comes at a time when the CBN, under Governor Olayemi Cardoso, is intensifying reforms aimed at attracting foreign investment, strengthening reserves and curbing exchange rate volatility.
The widening gap between the official and parallel markets has raised concerns about market distortions and speculative activity. By improving access to foreign exchange at the retail level, the apex bank hopes to reduce pressure on the black market and restore greater balance to the system.
The CBN described the move as part of broader efforts to deepen efficiency in the foreign exchange market and ensure wider access to dollars across the economy.
Whether the new framework will significantly narrow the rate gap depends on sustained liquidity supply and strict enforcement.
For now, the reopening of the FX window to BDCs marks one of the most notable policy adjustments in Nigeria’s evolving exchange rate management strategy.
Market analysts believe that the apex bank is leveraging Nigeria’s growing reserves to bridge the yawning gap in the FX market.
Janet Ogochukwu, senior banker and economist, says Nigeria’s robust reserves are strong enough to absorb any global shocks and boost investor confidence. “Latest data shows that Nigeria’s reserves are at about $49 billion, a decade high. These are enough buffers for the naira and the economy,” she said.
Financial expert and FX analyst, Osas Igho, says Nigeria’s economy is now attractive and could withstand falling oil prices.
“For the first time in over a decade, the country’s reserves are nearing $50 billion, and the stock market is buzzing. These are pointers to a growing economy and will boost investor confidence,” he said.
