BDCs risk suspension as CBN enforces new 24-hour FX rule
By Aboki Forex —
The Central Bank of Nigeria has ordered Bureau De Change operators to return any foreign exchange purchased through the Nigerian Foreign Exchange Market that remains unused within 24 hours of the expiry of the approved utilisation period. Operators who fail to meet this obligation face regulatory sanctions, including forfeiture of the outstanding foreign exchange balance and suspension of access to the NFEM.
CBN tightens rules on unused FX
The order is contained in the apex bank's Regulatory Guidance on the Purchase of Foreign Exchange by BDCs through Authorised Dealer Banks in the NFEM. The CBN 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."
The guidance also requires BDCs to disclose any unused foreign exchange from the preceding week when submitting new purchase requests. At the same time, authorised dealer banks must account for such carry-over balances when computing weekly allocations.
New restrictions on BDC operations
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
The CBN has sharpened its oversight of the retail foreign exchange market with the launch of a centralised FX BDC Purchase Tracker. 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.
For Nigerian businesses and consumers, the tighter rules signal the CBN's determination to curb speculative holding of FX by BDCs. If enforced strictly, the 24-hour rule could reduce hoarding and improve dollar supply at official rates, which may help stabilise the naira over time.