The Central Bank of Nigeria (CBN) has announced a temporary measure allowing Bureau de Change (BDC) operators to purchase up to $25,000 weekly from authorized dealers.
This initiative is set to run from December 19, 2024, to January 30, 2025. The directive was communicated through a circular dated December 19, 2024, signed by T.G. Allu on behalf of the acting Director of the Trade and Exchange Department.
The CBN emphasized that this measure aims to meet the seasonal retail demand for foreign exchange, ensuring a functional and liquid market while mitigating price volatility. Under this arrangement, BDC operators are permitted to buy foreign exchange from a single authorized dealer of their choice. However, they must fully fund their accounts before accessing the market at the prevailing Nigerian Foreign Exchange Market (NFEM) rate.
The CBN has stipulated that all transactions should be reported to the Trade and Exchange Department, with a maximum spread of 1% allowed on the pricing offered by BDCs to retail end-users.
"In order 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," the circular stated.
Additionally, the CBN reassured that Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) remain accessible through banks for legitimate travel and business purposes, conducted at market-determined exchange rates under the NFEM framework.
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