The Central Bank of Nigeria (CBN) has introduced a new regulatory framework governing foreign exchange purchases by Bureau De Change (BDC) operators through Authorised Dealer Banks in the Nigerian Foreign Exchange Market (NFEM), alongside an electronic portal aimed at improving transparency, compliance and liquidity in the retail FX market.

The framework, contained in a circular dated July 15, 2026, and signed by the Director of the CBN’s Trade and Exchange Department, Aderinola Shonekan, builds on the apex bank’s February 10, 2026 directive granting licensed BDCs access to foreign exchange through Authorised Dealer Banks.

According to the CBN, the revised guidelines establish detailed operational and regulatory procedures to ensure the effective implementation of the framework while supporting sustained liquidity in the retail foreign exchange market.

A key feature of the framework is the introduction of an electronic portal to facilitate interactions between BDC operators and the Nigerian Foreign Exchange Market. The guidelines also specify eligibility requirements, purchase request procedures, settlement and confirmation processes, reporting obligations, weekly purchase limits, treatment of unutilised balances and compliance responsibilities for both banks and BDCs.

The apex bank directed all Authorised Dealer Banks and licensed BDC operators to comply with the new framework with immediate effect, warning that breaches of the circular or its accompanying guidelines would attract regulatory sanctions.

Under the new rules, only BDCs holding valid and subsisting CBN licences are eligible to purchase foreign exchange through the arrangement. Operators whose licences are suspended or who are under regulatory sanctions or operational restrictions will remain ineligible until such restrictions are lifted.

The CBN also strengthened due diligence requirements for Authorised Dealer Banks, directing them to conduct Know-Your-Customer (KYC) and Customer Due Diligence (CDD) checks, retain relevant corporate records, carry out enhanced due diligence on high-risk BDCs and update customer information annually or whenever significant changes occur.

It stressed that no foreign exchange should be disbursed to any BDC that fails to satisfy the prescribed KYC and due diligence requirements.

To enhance regulatory oversight, the apex bank said it would operate a centralised FX BDC Purchase Tracker (FXBT), through which all licensed BDCs must register and submit real-time or same-day purchase data for monitoring and compliance purposes.

The framework also preserves the right of licensed BDCs to transact with any Authorised Dealer Bank of their choice, prohibiting banks from imposing exclusivity arrangements, referral fees or other conditions that restrict operators from selecting their preferred banking partners.

Authorised Dealer Banks are required to acknowledge purchase requests within two business hours and notify BDCs electronically whether requests have been approved or rejected. Where a request is declined, banks must state the reasons, including incomplete KYC documentation, exhaustion of the weekly $150,000 purchase limit at another bank, unresolved compliance concerns or internal risk considerations.

On settlement procedures, the CBN directed that all foreign exchange transactions between BDCs and banks, as well as sales to end-users, must be conducted through accounts maintained with licensed financial institutions.

The regulator also prohibited third-party transactions, stating that foreign exchange purchased by BDCs must be credited only to their registered settlement accounts. Any transfer to another account, it warned, would constitute a regulatory violation and must be reported to the CBN.

In addition, the apex bank directed BDCs to sell back any unutilised foreign exchange purchased through the NFEM within 24 hours after the permitted utilisation period expires.

It warned that failure to comply could result in sanctions, including forfeiture of unutilised balances and suspension of access to the Nigerian Foreign Exchange Market. BDCs must also disclose any unused balances from the previous week in every fresh purchase request, while banks are required to factor such balances into weekly purchase limit calculations.

Licensed BDCs are further required to continue filing electronic returns detailing weekly foreign exchange purchases, sales to end-users by transaction category, unutilised balances and settlement breakdowns.

The CBN said violations of the framework could attract monetary penalties, suspension of access to the NFEM, suspension or withdrawal of BDC licences, revocation of Authorised Dealer status for complicit banks and referral to law enforcement agencies where criminal conduct is suspected.

It added that while existing relationships between BDCs and Authorised Dealer Banks may continue, all future transactions must comply with the revised framework. Banks were also directed to review existing KYC records to ensure they meet the updated regulatory standards.

Meanwhile, CBN Governor Olayemi Cardoso disclosed that Nigeria’s net foreign exchange reserves have increased from about $3 billion at the beginning of the current economic reforms to approximately $40 billion, representing a 1,233.3 per cent increase.

Speaking at the BusinessDay CEO Forum in Lagos, Cardoso also revealed that the country’s gross external reserves have risen to about $52 billion.

He recalled that Nigeria’s net reserves stood at about $3 billion when the reforms commenced, citing figures published by J.P. Morgan that highlighted concerns about the country’s external financial position.

Cardoso attributed the improvement to policy reforms introduced over the past two years to stabilise the naira, improve foreign exchange liquidity and restore investor confidence following years of FX shortages and significant disparities between the official and parallel market exchange rates.

Describing the current macroeconomic stability as a platform for sustained growth rather than an end in itself, the CBN governor urged business leaders to take advantage of the improved economic environment by expanding investments.

According to him, sustained economic stability creates favourable conditions for higher investment, which in turn drives economic growth and employment generation.

The latest measures, he said, form part of the apex bank’s broader strategy to deepen liquidity in the foreign exchange market and eliminate distortions associated with the previous FX regime.