The Central Bank of Nigeria (CBN) has allowed Bureau de Change (BDC) operators to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM) as a temporary measure to address seasonal retail demand for FX during the holiday period.
This development was outlined in a circular dated December 19, 2024, signed by T.G. Allu on behalf of the Acting Director of the Trade and Exchange Department. The directive, which runs from December 19, 2024, to January 30, 2025, lets BDCs get FX from one Authorized Dealer of their choice, provided their accounts are fully funded before the transactions. The deals will happen at the current NFEM rate, with a maximum extra charge of 1% for individual customers.
The circular stated:
“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a 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 (Twenty-five thousand dollars only). This window will be open between December 19, 2024, and January 30, 2025.
“BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange Department, and a maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.”
The CBN assured everyone that Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) are still available through banks for genuine travel and business purposes.
This initiative fits with the CBN’s larger goal of keeping the foreign exchange market steady and managing seasonal demand surges effectively. It continues what the CBN started in November 2024, allowing licensed BDCs to purchase FX directly from Authorized Dealers under revised guidelines.
This change was meant to streamline Nigeria’s FX market and make sure the naira shows its real worth. However, participation in the scheme requires BDCs to comply with new capitalization guidelines introduced by the CBN in May 2024.
