CBN orders BDCs to return unused forex within 24 hours under new rules aimed at improving foreign exchange market oversight

The Central Bank of Nigeria (CBN) has directed Bureau De Change (BDC) operators to return any unused foreign exchange purchased through the official market within 24 hours after the approved utilisation period expires.

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The new directive forms part of fresh regulatory guidelines introduced by the apex bank to strengthen oversight of foreign exchange transactions and improve liquidity in the retail segment of the Nigerian Foreign Exchange Market (NFEM).

CBN orders BDCs to return unused forex as part of measures aimed at preventing operators from holding unutilised foreign currency balances and ensuring better circulation of available forex.

Under the new framework, BDC operators are prohibited from retaining foreign exchange purchased from the NFEM if it remains unused after the allowed period.

The CBN stated that such balances must be sold back into the NFEM within 24 hours of the expiration of the utilisation window.

“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 regulator said.

The bank warned that failure to comply could result in regulatory penalties, including the forfeiture of unused forex balances and suspension of access to the NFEM platform.

The guidelines also require BDCs to disclose any unused foreign exchange from previous purchases when submitting new requests, allowing authorised dealer banks to consider such balances when determining weekly purchase limits.

The CBN further prohibited third-party transactions involving forex obtained under the scheme, stating that foreign exchange purchased by a BDC must only be credited to the operator’s registered settlement account.

“Disbursement to any account other than the BDC’s own registered account shall constitute a regulatory violation and shall be reported immediately to the CBN,” the bank added.

Only BDC operators with valid CBN licences will be eligible to access foreign exchange through the framework, while operators facing sanctions, licence suspension or restrictions will remain excluded until cleared by the regulator.

To improve transparency, the CBN announced the introduction of the FX BDC Purchase Tracker (FXBT), a central monitoring platform where participating operators will submit same-day or real-time records of forex purchases.

The apex bank also cautioned authorised dealer banks against practices that could reduce competition among BDC operators, warning them against exclusive arrangements, referral charges or restrictions that prevent BDCs from choosing their preferred banking partners.

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The regulator said any breach of the new guidelines would attract appropriate sanctions as part of efforts to maintain discipline and stability within Nigeria’s foreign exchange market.