The Central Bank of Nigeria (CBN) has rolled out a new operational framework for Bureau De Change (BDC) operators, introducing a centralised electronic foreign exchange purchase portal while warning that operators and banks that flout the new rules risk severe regulatory sanctions, including licence suspension and withdrawal.
The new guidelines, contained in a circular dated July 15, 2026 and signed by the Director of Trade and Exchange, Aderinola Shonekan, are aimed at strengthening transparency, compliance and liquidity in the retail segment of Nigeria’s foreign exchange market.
A major feature of the new framework is the launch of the FX BDC Purchase Tracker (FXBT), an electronic platform designed to streamline foreign exchange purchase requests between licensed BDCs and authorised dealer banks while giving the apex bank real-time visibility into transactions.
According to the CBN, the guidelines build on its February 10, 2026 directive that granted licensed BDCs access to purchase foreign exchange from the Nigerian Foreign Exchange Market (NFEM) through authorised dealer banks.
“The guidance sets out the eligibility requirements for participating BDCs, purchase request procedures, settlement processes, reporting obligations, treatment of unused foreign exchange balances and compliance responsibilities for both banks and BDC operators,” the circular stated.
The apex bank directed all authorised dealer banks and licensed BDCs to comply with the new operational modalities with immediate effect, warning that breaches would attract regulatory sanctions.
Under the framework, only BDCs with valid and subsisting CBN licences will be permitted to access foreign exchange through the NFEM, while operators whose licences have been suspended or restricted remain barred until such sanctions are lifted.
The CBN also imposed stricter Know-Your-Customer (KYC) and due diligence requirements on authorised dealer banks before executing any foreign exchange transactions with BDCs.
Banks are now required to verify and retain key corporate documents, including operating licences, Tax Identification Numbers, Corporate Affairs Commission registration documents and beneficial ownership information, while updating KYC records at least annually or whenever ownership or management changes.
“The apex bank emphasised that no foreign exchange should be disbursed to any BDC that fails to satisfy these requirements,” the circular said.
To curb unfair practices, the CBN prohibited exclusivity arrangements and referral fees, allowing licensed BDCs to purchase foreign exchange from any authorised dealer bank of their choice.
It also mandated that all purchase requests be submitted electronically through the FXBT portal, with banks required to acknowledge requests within two business hours and communicate approvals or rejections immediately through the platform.
Where requests are rejected, banks must provide specific reasons, including incomplete KYC documentation, exhaustion of the weekly purchase limit of $150,000, unresolved compliance issues or internal risk considerations.
The regulator further tightened settlement procedures by directing that all foreign exchange transactions between banks, BDCs and customers must be conducted exclusively through accounts maintained with licensed financial institutions.
BDCs are also required to maintain dedicated foreign exchange settlement accounts registered with the CBN, while third-party transactions have been expressly prohibited.
In another major compliance measure, the apex bank barred BDCs from holding onto unused foreign exchange purchased from the NFEM.
According to the guidelines, any unutilised foreign exchange must be sold back into the market within 24 hours after the expiration of the utilisation period.
“Failure to comply could result in sanctions, including forfeiture of the unused balances and suspension of the operator’s access to the NFEM,” the CBN warned.
The regulator also directed BDCs to disclose any unused foreign exchange from the previous week when submitting fresh purchase requests, while authorised dealer banks must factor such disclosures into weekly purchase limit calculations.
The CBN retained existing reporting obligations, requiring licensed BDCs to continue filing weekly electronic returns detailing foreign exchange purchases, sales to end-users, unused balances, disposal of such balances and settlement records.
The apex bank warned that violations of the new operational guidelines or its earlier directives would attract sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Foreign Exchange Act.
“The sanctions include monetary penalties, suspension of NFEM access for defaulting BDCs, withdrawal or suspension of operating licences, revocation of authorised dealer status for banks found complicit in violations, and referral to law enforcement agencies where criminal conduct is suspected,” the CBN stated.
