CBN Sets Weekly Dollar Acquisition Limit for BDCs at $150,000

The Central Bank of Nigeria (CBN) has enacted a new foreign exchange policy enabling licensed Bureau De Change (BDC) operators to directly acquire United States dollars from the Nigerian Foreign Exchange Market (NFEM), imposing a weekly limit of $150,000 for each operator.

According to the CBN, this action is part of a broader strategy to augment dollar liquidity within the retail market, ensuring individuals and small enterprises with valid foreign exchange requests can access funds with greater ease.

In a circular dated February 10, 2026, authorized by the Director of the Trade and Exchange Department, Dr. Musa Nakorji, the CBN clarified that all licensed BDCs are entitled to procure foreign currency from any Authorised Dealer Bank at the current market rates.

This policy represents a notable change from earlier restrictions on BDCs regarding where they could obtain their supply of foreign currency.

The CBN also indicated that this new framework aims to enhance market efficiency, promote transparency, and optimize the overall operation of the foreign exchange system.

Allowing BDCs to purchase directly from the official market is anticipated to address supply deficiencies in the retail segment, where many Nigerians seek foreign exchange for travel, education fees, medical expenses, and small-scale business operations.

Banks are required to conduct thorough Know-Your-Customer (KYC) processes and due diligence checks prior to completing any transactions with BDCs. The CBN emphasized that only verified and licensed operators would be permitted to engage in this transaction process.

The circular stated: "To ensure that adequate foreign exchange liquidity is made available in the retail segment of the foreign exchange market to meet the legitimate needs of end users, all CBN licensed BDCs are authorized to access foreign exchange from the NFEM via any Authorised Dealer of their choosing at the prevailing exchange rate.

"Authorised Dealers must fulfill the necessary KYC and due diligence for their BDC clients as per applicable regulations and their internal risk management systems.

"Once these prerequisites are satisfied, foreign exchange can be sold to BDCs under the current BOC Guidelines, capped at a maximum of USD150,000 weekly for each BDC.

"All licensed BDCs are obliged to submit timely and accurate returns to the Central Bank electronically, complying with existing regulations.

"Any unutilized balances should be resold to the market within 24 hours (BDCs are prohibited from retaining funds obtained from NFEM).

"Foreign exchange transactions conducted by BDCs with Authorised Dealers and/or end customer clients must be settled exclusively through accounts held with licensed financial institutions. Third-party transactions are not allowed, and cash settlements for foreign exchange sales are restricted to a maximum of 25% of each transaction amount."