The Central Bank of Nigeria (CBN) is tightening its grip on Nigeria’s retail foreign exchange market by tracking every Bureau De Change (BDC) transaction from the moment an operator requests foreign currency until it is eventually sold.
In fresh operational guidance dated July 15, issued to banks and licenced BDC operators, the apex bank released the framework for the implementation of a centralised electronic portal that will record every foreign exchange purchase made by BDCs through authorised dealer banks.
“The Guidance announces the implementation of the electronic portal to facilitate the interaction between BDCs and the NFEM and outlines, among others,” the CBN said.
The portal, known as the FX BDC Purchase Tracker (FXBT), will require BDCs to submit real-time or same-day data on dollar purchases, enabling systemic compliance and oversight.
The guidance builds on the CBN’s February decision to allow licenced BDCs to buy foreign exchange directly from authorised dealer banks through the Nigerian Foreign Exchange Market (NFEM), a move aimed at improving liquidity in the retail segment of the market.
But while that earlier policy reopened official FX access, the latest framework is a digital infrastructure for monitoring the movement of retail dollars.
The portal gives the CBN visibility into every request, approval, and settlement, making it easier to identify BDCs attempting to exceed their weekly purchase limits of $150,000, obtain allocations from multiple banks, or divert foreign exchange outside approved channels.
The move reflects the regulator’s broader push to replace fragmented reporting with transaction-level oversight in one of Nigeria’s most opaque financial markets.
In December 2025, the CBN issued the first batch of final licences to 82 Bureau De Change operators under its 2024 Regulatory and Supervisory Guidelines, as it moved to shrink the space for street trading, sanitise the supply chain, and restore confidence across the market.
Nigeria’s foreign exchange reforms since June 2023 have largely focused on liberalising the market and improving price discovery. By digitising how BDCs interact with banks and requiring every transaction to pass through a central reporting system, the CBN is building the infrastructure to monitor liquidity, enforce compliance, and detect abuse in real time.
Banks become the first line of enforcement
Before selling foreign exchange to any BDC, authorised dealer banks must conduct full Know-Your-Customer (KYC) and customer due diligence checks, verify beneficial ownership information, retain incorporation documents, and perform enhanced due diligence on higher-risk operators. Banks are prohibited from disbursing foreign exchange to any BDC that fails these requirements.
That effectively turns banks into the first gatekeepers of regulatory compliance, reducing the CBN’s reliance on post-transaction supervision.
The framework also bars banks from forcing BDCs into exclusive relationships, allowing operators to choose any authorised dealer bank for their purchases.
A BDC wishing to purchase FX must submit a purchase request electronically via the FX purchase tracker portal to the chosen bank. Banks must acknowledge receipt of the request within two business hours of receipt and confirm success or rejection of the request to the BDC through the portal immediately.
Under the new rules, BDCs are prohibited from holding on to FX purchased through the NFEM if it remains unsold. Any unused balance must be sold back to the NFEM market within 24 hours after the utilisation period expires. Operators that fail to comply risk forfeiting the balance and losing access to the official market.
They must also disclose previously unused balances whenever they submit fresh purchase requests.
The provision is designed to discourage speculation and ensure that official foreign exchange supplied to BDCs continues circulating through the market instead of being warehoused in anticipation of future exchange rate movements.
All foreign exchange transactions between banks, BDCs, and customers must now be settled through accounts held with licensed financial institutions. Third-party transactions are prohibited, meaning foreign exchange purchased by a BDC can only be credited to its registered settlement account. Any transfer to another account constitutes a regulatory breach.
“Accordingly, all Authorised Dealer Banks and licensed BDCs are required to familiarise themselves with and comply strictly with the attached Regulatory Guidance and Modalities with immediate effect,” the CBN added.
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