The Central Bank of Nigeria has issued new regulatory guidelines requiring Bureau De Changes to return any unspent foreign exchange to the Nigerian Foreign Exchange market within one day after the allowed usage timeframe ends. According to the directive, BDCs are forbidden from holding onto any unused foreign currency acquired through authorized dealer banks. Any firm that fails to follow this rule may face strict penalties, such as the loss of funds or the temporary loss of access to the foreign exchange market.
To ensure transparency, BDCs must report any leftovers from the previous week when applying for new purchases. Authorized banks are required to include these remaining amounts when setting the weekly purchase limits for each operator. The Central Bank explained that these measures are intended to maintain consistent liquidity within the retail foreign exchange sector.
Furthermore, the regulator has banned third-party transactions. Any foreign currency bought by a BDC must be deposited exclusively into its registered settlement account; sending funds elsewhere is considered a violation. Only entities with current, active licenses are permitted to participate in this market, while those currently under suspension or facing operational restrictions are barred until their status is cleared.
The Central Bank will oversee operations through the FX BDC Purchase Tracker, a portal requiring all participants to provide real-time data on their transactions. Additionally, banks are prohibited from forcing exclusivity agreements or demanding referral fees that limit a BDC’s ability to choose its banking partners. Any breach of these new protocols will result in official regulatory action.
