By Kolawole Omotola Olaide
The Central Bank of Nigeria (CBN) has unveiled a new set of regulations aimed at tightening oversight of Bureau De Change (BDC) operators and improving transparency in the country’s foreign exchange market.
Under the revised framework, all BDCs are now required to return any foreign exchange purchased from the Nigerian Foreign Exchange Market (NFEM) but left unused within 24 hours after the approved utilisation period expires.
The apex bank explained that BDCs will no longer be allowed to retain unused foreign currency in their possession beyond the stipulated timeframe. Any balance that remains unused must be sold back into the Nigerian Foreign Exchange Market within one day.
According to the CBN, operators who fail to comply with the directive risk severe regulatory sanctions, including the forfeiture of the unused foreign exchange and suspension from accessing the NFEM.
The new guidelines also require BDCs to disclose any unused foreign exchange from the previous week whenever they submit fresh purchase requests. Authorised dealer banks have been instructed to consider such disclosures when calculating each operator’s weekly foreign exchange allocation.
In another major provision, the CBN prohibited third-party transactions involving foreign exchange obtained through the scheme. The bank stated that all purchased foreign exchange must be credited only to a BDC’s registered settlement account, warning that any transfer to another account would constitute a regulatory violation and must be reported immediately.
The apex bank further clarified that only Bureau De Change operators with valid and active CBN licences will be eligible to participate in the foreign exchange market. Operators with suspended licences, those under regulatory sanctions or firms facing operational restrictions will remain ineligible until such sanctions are lifted.
To strengthen compliance and monitoring, the CBN announced the introduction of the FX BDC Purchase Tracker (FXBT), a centralised digital platform through which BDCs will submit real-time or same-day records of all foreign exchange purchases.
The regulator also warned authorised dealer banks against anti-competitive practices, directing them not to impose exclusive agreements, referral charges or other conditions that could prevent BDC operators from freely choosing their preferred counterparty banks.
The Central Bank said the new measures are designed to enhance accountability, improve liquidity at the retail end of the foreign exchange market and ensure strict compliance with Nigeria’s foreign exchange regulations. It added that any breach of the new directives or related regulatory guidelines will attract appropriate sanctions.
