CBN Unveils Electronic Portal, Tightens Rules for BDCs’ FX Purchases

The Central Bank of Nigeria (CBN) has introduced a new regulatory framework for the purchase of foreign exchange by Bureau De Change (BDC) operators through Authorised Dealer Banks in the Nigerian Foreign Exchange Market (NFEM), unveiling an electronic portal as part of efforts to enhance transparency, compliance and liquidity in the retail foreign exchange market.

The apex bank, in a circular dated July 15, 2026 and signed by the director of its Trade and Exchange Department, Aderinola Shonekan, said the framework follows its earlier February 10, 2026 circular granting licensed BDCs access to foreign exchange through Authorised Dealer Banks.

The latest circular provides detailed regulatory and operational modalities to facilitate seamless implementation of the framework while supporting sustained liquidity in the retail segment of the foreign exchange market.

The bank stated that the guidance introduces an electronic portal to strengthen interactions between BDCs and the Nigerian Foreign Exchange Market, outlining eligibility requirements, purchase request procedures, confirmation and settlement processes, reporting obligations, weekly purchase limits, treatment of unutilised balances and compliance responsibilities for both Authorised Dealer Banks and BDC operators.

It thus directed all Authorised Dealer Banks and licensed BDCs to familiarise themselves with and comply strictly with the new modalities with immediate effect, warning that breaches of the circular and accompanying guidance would attract regulatory sanctions.

Under the new framework, only BDCs with valid and subsisting CBN licences will be eligible to access foreign exchange through the arrangement, while operators under regulatory sanctions, licence suspension or operational restrictions will be excluded until such restrictions are lifted.

The CBN also placed fresh due diligence obligations on Authorised Dealer Banks, requiring them to complete Know-Your-Customer (KYC) and Customer Due Diligence (CDD) checks, retain relevant corporate documents, carry out enhanced due diligence for high-risk BDCs and update customer records annually or whenever there are material changes.

It stressed that no foreign exchange should be disbursed to any BDC that fails to meet the prescribed KYC and due diligence requirements. As part of the operational changes, the apex bank said it would maintain a centralised FX BDC Purchase Tracker (FXBT) through which all BDCs would register and submit real-time or same-day purchase data to enhance compliance and regulatory oversight.

The framework also preserves the right of licensed BDCs to choose any Authorised Dealer Bank for foreign exchange purchases, prohibiting banks from imposing exclusivity arrangements, referral fees or any condition that limits a BDC’s freedom to select its preferred banking partner.

The CBN further directed Authorised Dealer Banks to acknowledge purchase requests within two business hours and notify BDCs electronically whether requests have been approved or rejected. It added that any rejection must clearly state the reason, including incomplete KYC documentation, exhaustion of the weekly $150,000 purchase cap at another bank, unresolved compliance issues or internal risk considerations.

On settlement procedures, the regulator mandated that all foreign exchange transactions between BDCs and banks, as well as transactions with end-users, must be conducted through accounts held with licensed financial institutions.

It also prohibited third-party transactions, directing that foreign exchange purchased by BDCs must be credited only to their registered settlement accounts, warning that any transfer to another account would constitute a regulatory violation reportable to the CBN.

The CBN equally barred BDCs from retaining unutilised foreign exchange purchased through the NFEM, requiring such balances to be sold back to the market within 24 hours after the utilisation period expires.

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

In addition, licensed BDCs are required to continue filing electronic returns to the CBN detailing weekly foreign exchange purchases, sales to end-users by transaction category, unutilised balances and settlement breakdowns for customer transactions.

The apex bank warned that violations of the regulatory modalities could attract monetary penalties, suspension of NFEM access, withdrawal or suspension of BDC 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 added that while existing relationships between BDCs and Authorised Dealer Banks may continue, all transactions must henceforth comply with the new framework, noting that existing KYC records would also be reviewed to ensure full compliance with the revised requirements.