The Central Bank of Nigeria (CBN) has introduced new regulations for Bureau de Change (BDC) operators, limiting them to purchasing a maximum of $25,000 weekly from a single authorised dealer bank.
This directive, disclosed in a circular signed by Dr W. J. Kanya, Acting Director of the Trade and Exchange Department on February 5, 2025, is aimed at regulating the forex market and ensuring transparency.
Under the new rules, CBN stated that BDCs must source forex from only one authorised dealer per week and authorised dealer banks must sell forex to BDCs at the prevailing rate in the Nigerian Foreign Exchange Market (NFEM) window.
To prevent excessive charges, the CBN also capped the margin that BDCs can add when selling to end users at 1 per cent and any BDC found violating this rule will face sanctions from the CBN.
BDC operators are allowed to sell forex only for approved invisible transactions, such as personal travel allowances and medical expenses, with a limit of $5,000 per transaction per quarter.
The apex bank further added that authorised dealer banks are required to send weekly reports of their forex sales to BDCs in a specified Excel format to the Trade and Exchange Department via teddmo@cbn.gov.ng.
The CBN has also made it mandatory for both banks and BDCs to submit regular reports on their forex purchases and sales through the Financial Institutions Forex Reporting System (FIFX).
To strengthen compliance, BDCs must maintain records of all transactions, including the Bank Verification Number (BVN) of end users and an endorsement of the amount disbursed in the beneficiary’s international passport.
The CBN emphasised that all operators must strictly adhere to Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements. Any bank or BDC that violates these guidelines, including engaging in forex diversion, will face sanctions that could include suspension of their operating licence, it said.
