CBN unveils digital tracker for BDC dollar transactions, tightens compliance rules

The Central Bank of Nigeria has introduced a new digital monitoring system to tighten oversight of Bureau De Change operators and improve transparency in the foreign exchange market. In fresh operational guidance issued on Wednesday, July 15, 2026, to authorised dealer banks and licensed BDCs, the apex bank unveiled the FX BDC Purchase Tracker, a centralised electronic platform designed to monitor every dollar transaction from the point a BDC requests foreign exchange until the funds are sold to customers.

How the FX BDC Purchase Tracker works

All licensed BDCs must now submit real-time or same-day information on every foreign exchange purchase through the FX BDC Purchase Tracker. The digital platform gives the CBN full visibility over every request, approval, allocation, and settlement involving official foreign exchange sold to BDCs.

The tracker will help regulators identify operators attempting to exceed the weekly purchase limit of $150,000, obtain allocations from multiple banks, or divert foreign exchange outside approved channels. The initiative follows the CBN's February decision allowing licensed BDCs to purchase foreign exchange directly from authorised dealer banks through the Nigerian Foreign Exchange Market, a policy aimed at boosting liquidity in the retail FX segment.

Stricter compliance duties for banks

Authorised dealer banks have been assigned a stronger compliance role before selling foreign exchange to any BDC. Banks must carry out comprehensive Know-Your-Customer procedures, verify beneficial ownership, retain incorporation documents, and conduct enhanced due diligence on higher-risk operators.

Any BDC that fails to meet these requirements will be denied access to official foreign exchange. However, the CBN clarified that banks cannot compel BDCs to maintain exclusive banking relationships. Operators remain free to purchase foreign exchange from any authorised dealer bank of their choice.

The guidance also requires banks to acknowledge BDC purchase requests within two business hours and communicate approvals or rejections immediately through the digital portal.

Tougher rules against speculation and hoarding

The CBN has introduced tougher rules to discourage speculation and hoarding of foreign exchange. Any foreign exchange purchased through the NFEM that remains unsold after the approved utilisation period must be returned to the market within 24 hours. BDC operators that fail to comply risk forfeiting the unused funds and may lose access to future official foreign exchange allocations.

Additionally, operators must disclose any previously unused balances whenever they submit fresh purchase requests. The new requirement is designed to ensure that official foreign exchange continues circulating within the market instead of being held back in anticipation of exchange rate gains.

Every foreign exchange transaction between banks, BDCs, and customers must be settled through accounts held with licensed financial institutions. Third-party transactions have been expressly prohibited, meaning foreign exchange purchased by a BDC can only be credited into its registered settlement account. Any transfer to another account will be treated as a regulatory violation.

Broader FX reform context

The latest measures build on the CBN's broader efforts to reform Nigeria's foreign exchange market. In December 2025, the apex bank issued final licences to 82 BDC operators under its 2024 Regulatory and Supervisory Guidelines as part of efforts to sanitise the sector, reduce illicit street trading, and restore confidence in the country's FX market.

The CBN directed all authorised dealer banks and licensed BDCs to familiarise themselves with the new rules and comply immediately, signalling that digital monitoring will now play a central role in supervising Nigeria's retail foreign exchange market.

Legit.ng earlier reported that the CBN directed the freeze of assets of six individuals and four Bureaux de Change linked to terrorism financing, underscoring ongoing efforts to combat terrorism and enforce compliance among financial institutions in Nigeria.

What this means for the naira and consumers: The CBN's digital tracker and stricter compliance rules aim to reduce speculation and hoarding, which should improve transparency in the retail FX market. If effectively enforced, these measures could help stabilise the naira by ensuring official foreign exchange reaches end-users rather than being diverted or held for speculative gains. However, tighter oversight may also reduce the number of BDCs able to access official dollars, potentially concentrating liquidity among compliant operators.