February 13, 2026/CSL Report
The Central Bank of Nigeria (CBN) has issued a circular to authorised dealer banks and the public approving licensed Bureau De Change (BDC) operators to purchase up to US$150,000 per week from the Nigerian Foreign Exchange Market (NFEM). The move is aimed at improving liquidity in the retail foreign exchange segment and meeting legitimate end-user demand.
This marks a significant shift following a period of restricted access to official FX for BDCs and reflects the CBN’s broader effort to recalibrate liquidity distribution within the market. By restoring structured access to official supply channels, the apex bank seeks to stabilise retail FX dynamics while reinforcing its ongoing foreign exchange reforms.
The circular also introduces stricter operational and compliance requirements. Licensed BDCs must submit timely and accurate electronic returns in line with CBN guidelines. All FX transactions, whether with authorised dealers or end users, must be conducted exclusively through settlement accounts with licensed financial institutions. Only 25% of the approved weekly purchase may be settled in cash. In addition, BDCs are prohibited from holding FX positions. Any unsold balances must be resold into the market within 24 hours. These measures signal tighter regulatory oversight aimed at enhancing transparency, curbing speculative hoarding, and strengthening market discipline.
Earlier in 2025, BDCs were limited to purchasing a maximum of US$25,000 per week from a single authorised dealer bank as part of efforts to sanitise the retail FX segment. Subsequently, operators were reportedly suspended from purchasing foreign currency from banks altogether, significantly constraining retail supply. According to the President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadebe, the suspension forced BDCs to rely on alternative and limited FX sources, reducing liquidity for end users.
The latest directive not only reverses that suspension but also substantially increases weekly access, from US$25,000 to US$150,000, indicating a deliberate effort by the CBN to deepen liquidity in the retail market. The policy shift comes amid a widening gap between official and parallel market exchange rates, currently estimated at around 6.8%. Such spreads heighten the risk of arbitrage and speculative activity, potentially undermining exchange rate stability.
By expanding official FX access to BDCs while tightening compliance requirements, the CBN appears to be pursuing a dual objective: narrowing the exchange rate differential and strengthening transmission from the official market to the retail segment. Increased access at official rates should help ease parallel market pressures, promote price convergence, and support more efficient liquidity management across the broader foreign exchange system.
Click here to download full report: CSL Nigeria Daily – 13 February 2026 – Economy.pdf
