CBN’s Unexpected Shift FX Access for BDCs Extended Until May

The Central Bank of Nigeria (CBN) has extended its approval for Bureau de Change (BDC) operators to purchase foreign exchange from authorized dealers, allowing them to continue meeting retail market demand for eligible invisible transactions. This extension moves the deadline to May 30, giving BDCs additional time to source FX under regulated conditions.

The announcement was made in a circular issued on Monday by the Trade and Exchange Department of the CBN. It follows an earlier directive, referenced TED/FEM/PUB/FPC/001/030 and dated December 19, 2024, which temporarily granted existing BDCs access to foreign exchange from the Nigerian Foreign Exchange Market (NFEM).

Under this arrangement—originally set to expire on January 31—BDC operators are permitted to purchase foreign currency, but with a strict limit of $25,000 per operator per week. The central bank clarified that all terms and conditions from the previous directive remain unchanged despite the extended deadline.

By prolonging this initiative, the CBN aims to maintain liquidity in the FX market and ensure accessibility for small-scale users who rely on BDCs for foreign exchange transactions. The apex bank also reaffirmed its commitment to stabilizing the forex market, pledging to step in with necessary liquidity measures to prevent excessive volatility in exchange rates.

This move is part of broader efforts to restore confidence in Nigeria’s foreign exchange system while ensuring that individuals and businesses have continued access to FX for essential transactions.