The Central Bank of Nigeria (CBN) has introduced a new digital framework for Bureau De Change (BDC) operators purchasing foreign exchange from authorised dealer banks, marking another step in the modernisation of Nigeria's foreign exchange market.
The framework, which takes immediate effect, establishes stricter compliance requirements and a central electronic platform aimed at improving transparency, efficiency, liquidity and orderly participation in the retail segment of the Nigerian Foreign Exchange Market (NFEM).
Contained in a July 15 circular signed by Aderinola Shonekan, Director of the Trade and Exchange Department, the guidelines implement the CBN's February 10, 2026 directive that restored licensed BDCs' access to the official FX market through authorised dealer banks.
At the core of the reforms is the FX BDC Purchase Tracker (FXBT), a centralised portal through which all eligible BDCs must submit purchase requests electronically to any authorised dealer bank of their choice. The CBN prohibited banks from imposing exclusivity arrangements, referral fees or any condition that limits a BDC's choice of banking partner.
Only BDCs with valid and subsisting CBN licences are eligible to participate. Operators under regulatory sanctions, with suspended licences or restricted operations remain ineligible until those sanctions are lifted.
Before processing any transaction, authorised dealer banks must complete Know Your Customer (KYC) and Customer Due Diligence (CDD) checks, obtaining each BDC's licence certificate, Tax Identification Number (TIN), Corporate Affairs Commission (CAC) incorporation documents, beneficial ownership information and the contact details of principal officers. Banks must also conduct enhanced due diligence for higher-risk operators and update KYC records annually or whenever ownership or management changes materially.
The CBN said no foreign exchange should be disbursed to any BDC that fails to meet these requirements.
Banks are required to acknowledge purchase requests within two business hours. Approved applications will be confirmed through the FXBT portal, while rejected requests must clearly state the reason, including incomplete KYC documentation, exhaustion of the weekly purchase limit, unresolved compliance issues or internal risk concerns.
The regulator retained the weekly purchase cap of $150,000 per BDC across all authorised dealer banks and prohibited third-party transactions. All FX purchased under the framework must be credited only to the BDC's registered settlement account with a licensed financial institution.
The guidelines also require any unused FX purchased through the NFEM to be sold back into the market within 24 hours after the utilisation period expires. Failure to comply could result in forfeiture of the funds, suspension of access to the NFEM and other regulatory sanctions. BDCs must also disclose any unused balances from the previous week when submitting new purchase requests, with banks factoring those balances into weekly purchase limits.
Licensed operators are expected to continue filing electronic returns covering weekly FX purchases, sales to end users, settlement methods and unutilised balances.
The CBN warned that breaches of the guidelines or its February 10, 2026 circular will attract sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Foreign Exchange Act. Penalties include monetary fines, suspension of access to the NFEM, withdrawal of BDC licences, revocation of authorised dealer status for banks that facilitate violations and referral to law enforcement agencies where criminal conduct is suspected.
The apex bank said its Trade and Exchange Department will monitor compliance through on-site and off-site examinations, which may be conducted without prior notice. Existing banking relationships may continue, but all transactions must comply with the new operational framework.