The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 in foreign exchange weekly from the Nigerian Foreign Exchange Market (NFEM) to meet seasonal retail demand during the holiday period.
This arrangement, which took effect on December 19, 2024, will run until January 30, 2025. According to a circular issued on December 19 and signed by T.G. Allu, acting on behalf of the CBN’s Trade and Exchange Department, the move aims to ensure adequate foreign exchange availability for retail transactions during the festive season.
A portion of the circular reads: “To meet expected seasonal demand for foreign exchange, the CBN is allowing temporary access for all existing BDCs to the NFEM for the purchase of FX from authorized dealers, subject to a weekly cap of USD 25,000.00. This window will be open between December 19, 2024, and January 30, 2025.”
BDC operators will be required to purchase forex at the prevailing NFEM rate and adhere to a maximum 1 percent spread when pricing foreign exchange for retail end-users. The CBN further clarified that transactions must be conducted with a single authorized dealer of the operator’s choice, and operators are mandated to fully fund their accounts before accessing the market.
The circular also emphasized: “All transactions with BDCs should be reported to the Trade and Exchange Department, and a maximum spread of 1 percent is allowed on the pricing offered by BDCs to retail end-users.”
The CBN assured the public that Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) will remain accessible through banks for legitimate travel and business needs, conducted at market-determined exchange rates.
