The Central Bank of Nigeria (CBN) has issued new regulatory guidance for Bureau De Change (BDC) operators, mandating that any foreign exchange purchased through the Nigerian Foreign Exchange Market (NFEM) must be utilised within a specified period or returned within 24 hours of expiry. The directive is part of a broader effort to improve transparency and compliance in the retail FX market.
CBN Orders Return of Unutilised FX Within 24 Hours
According to the CBN's Regulatory Guidance on the Purchase of Foreign Exchange by BDCs through Authorised Dealer Banks in the NFEM, BDCs are prohibited from retaining unutilised foreign exchange. The apex bank stated: "BDCs are not permitted to retain in their possession any foreign exchange purchased from the NFEM that remains unutilised. All unutilised balances shall be sold back to the NFEM market within twenty-four (24) hours of the expiry of the utilisation period."
Operators who fail to comply face regulatory sanctions, including forfeiture of the outstanding foreign exchange balance and suspension of access to the NFEM. The guidance also requires BDCs to disclose any unused foreign exchange from the preceding week when submitting new purchase requests, while authorised dealer banks must account for such carry-over balances when computing weekly allocations.
CBN Bans Third-Party FX Transactions
Beyond the 24-hour rule, the CBN has barred BDCs from directing foreign exchange purchases into any account other than their registered settlement accounts. Transfers to third-party accounts will be treated as regulatory violations and must be reported without delay. Participation in the framework is restricted to BDCs holding valid CBN licences. Operators whose licences have been suspended, are subject to existing sanctions, or whose operating conditions have been curtailed by the bank will be ineligible to access the NFEM until those restrictions are formally lifted.
The regulator also moved against anti-competitive practices by authorised dealer banks, prohibiting exclusivity arrangements, referral fees, and any other conditions that could restrict a BDC's right to freely choose its counterparty bank.
CBN Launches FX Purchase Tracker
In a related development, the CBN has sharpened its oversight of the retail foreign exchange market with the launch of a centralised FX BDC Purchase Tracker (FXBT). All eligible BDCs are required to register on the platform and submit real-time or same-day data on foreign exchange purchases. The CBN said the tracker is designed to improve monitoring and strengthen transparency across the sector. The bank stressed that violations of the circular or the accompanying regulatory guidance would attract appropriate sanctions as it works to maintain orderly conditions and sustain liquidity in Nigeria's foreign exchange market.
