The Central Bank of Nigeria (CBN) has announced a new system to monitor foreign exchange purchases by Bureau De Change (BDC) operators through a newly introduced FXBT portal. This initiative is aimed at increasing transparency and accountability in the forex market, which has faced challenges with speculative activities and round-tripping.
Key Features of the FXBT Portal
The FXBT portal will require BDC operators to submit detailed information for each forex purchase, including the purpose of the transaction and the beneficiary details. The CBN stated that this will enable real-time tracking of forex flows and help curb illicit financial activities. According to a circular signed by Dr. O.S. Nnaji, Director of the Trade and Exchange Department, the portal will be mandatory for all BDC operators effective from August 1, 2026.
Impact on BDC Operations
BDC operators are expected to comply with the new reporting requirements or face sanctions, including suspension of their licenses. The CBN emphasized that the portal is designed to streamline operations and reduce the prevalence of multiple forex purchases by individuals, which has been a major concern. The new system replaces the previous manual reporting process, which was prone to errors and manipulation.
Enhancing Forex Market Stability
The introduction of the FXBT portal is part of broader reforms by the CBN to stabilize the naira and boost foreign reserves. The apex bank has been implementing measures to unify the exchange rate and increase forex supply to the official market. According to the CBN Governor, Mr. Godwin Emefiele, the portal will provide accurate data for policy decisions and help restore confidence in the forex market.
Industry Reactions
Some BDC operators have expressed mixed reactions, with concerns about additional administrative burdens. However, the CBN assured that the portal will be user-friendly and support is available. The Association of Bureau De Change Operators of Nigeria (ABCON) has urged its members to embrace the new system, noting that it will enhance the integrity of the BDC subsector.
Implementation Timeline
The CBN has set a deadline of July 31, 2026, for all BDC operators to register on the FXBT portal. After this date, only registered operators will be eligible to purchase forex from the CBN. The bank also warned that any operator found circumventing the portal will face severe penalties, including license revocation.
