In a major tactical shift to stabilize the Naira, the Central Bank of Nigeria (CBN) has approved a new framework that reconnects licensed Bureau De Change (BDC) operators to the official Nigerian Foreign Exchange Market (NFEM).
Effective immediately, each licensed BDC is now permitted to purchase up to $150,000 per week through authorized dealer banks.
This move aims to decentralize dollar access and drain the demand currently fueling the parallel (black) market.
The “24-Hour Rule”: Ending FX Hoarding
Unlike previous cycles where BDCs could hold onto foreign currency, the new circular signed by Dr. Musa Narkoji, director of Trade and Exchange, introduces a “Velocity Mandate.”
No Retention: BDCs are prohibited from holding FX positions sourced from the NFEM.
The 24-Hour Sell-Back: Any unutilized balances must be sold back to the market within 24 hours.
Digital Returns: All transactions must be reported electronically in real-time, moving the sector closer to a fully audited digital ledger.
Guardrails: KYC and Non-Cash Settlements
To prevent the “round-tripping” that led to the 2021 BDC ban, the CBN has imposed strict fintech-style compliance:
- Digital Settlement: Every transaction between a bank and a BDC must be settled through official bank accounts.
- Cash Capping: Cash settlements for end-users are now strictly capped at 25% of the transaction value, forcing the remaining 75% into traceable digital channels (transfers, cards, etc.).
- KYC Responsibility: Authorized dealer banks (Zenith, Access, UBA, etc.) are now legally liable for the “Know Your Customer” (KYC) integrity of their BDC clients.
The New BDC Framework at a Glance
| Feature | New Regulation (Feb 2026) | Purpose |
| Weekly Cap | $150,000 per BDC | Boost retail liquidity |
| Purchase Rate | Prevailing Market Rate | Narrow official-parallel gap |
| Unutilized Funds | Sell back within 24 hours | Curb speculation/hoarding |
| Cash Limit | Max 25% of transaction | Drive digital FX adoption |
| Reporting | Electronic Returns | Real-time market monitoring |
A Win for Digital Payments?
By capping cash settlements at 25%, the CBN is effectively subsidizing the growth of cross-border payment startups.
End-users who used to buy “physical dollars” will now be pushed toward digital wallets and FX-linked cards. This framework doesn’t just manage the Naira; it builds the infrastructure for a more traceable retail FX economy.
