The Central Bank of Nigeria (CBN) has introduced a digital monitoring system that will track Bureau De Change (BDC) foreign exchange transactions from purchase requests to final utilisation, as the regulator moves to strengthen oversight of the retail FX market.
Under the new framework issued on July 15, banks and licensed BDC operators will now be required to process all foreign exchange purchases through a centralised electronic platform known as the FX BDC Purchase Tracker (FXBT).
The system will provide the apex bank with real-time visibility into dollar purchases by BDCs, allowing it to monitor compliance, prevent market abuses and improve transparency in the retail segment of the foreign exchange market.
“The Guidance announces the implementation of the electronic portal to facilitate the interaction between BDCs and the Nigerian Foreign Exchange Market (NFEM) and outlines, among others,” the CBN stated.
The latest measure builds on the bank’s February policy that allowed licensed BDCs to access foreign exchange directly from authorised dealer banks through the NFEM, a move designed to improve liquidity and reduce reliance on informal channels.
However, the new framework introduces a technology-driven layer of supervision, enabling the CBN to monitor every request, approval and settlement involving BDC operators.
The tracker is expected to help the regulator identify operators that exceed their weekly foreign exchange purchase limit of $150,000, obtain multiple allocations from different banks, or divert FX outside approved channels.
The move forms part of broader reforms by the CBN to sanitise the retail foreign exchange market and replace fragmented reporting systems with transaction-level monitoring.
Under the new rules, authorised dealer banks will serve as the first line of enforcement. Before supplying foreign exchange to any BDC, banks must complete Know-Your-Customer (KYC) checks, verify beneficial ownership details, review incorporation documents and conduct enhanced due diligence on high-risk operators.
Banks are prohibited from selling foreign exchange to BDCs that fail to meet regulatory requirements.
The framework also prevents banks from imposing exclusive relationships on BDC operators, allowing them to purchase FX from any authorised dealer bank of their choice.
BDCs seeking foreign exchange must submit requests electronically through the FXBT platform. Banks are required to acknowledge requests within two business hours and provide immediate confirmation of approval or rejection through the portal.
The CBN further restricted speculative behaviour by directing BDCs to return unused foreign exchange balances to the NFEM within 24 hours after the utilisation period expires.
Operators must also disclose any unused balances before submitting new purchase requests, while failure to comply could result in forfeiture of funds and suspension from accessing the official market.
The regulator also mandated that all FX transactions between banks, BDCs and customers must be settled through accounts maintained with licensed financial institutions, effectively banning third-party transactions.
The digital framework marks another step in the CBN’s effort to improve transparency, strengthen market discipline and ensure that official foreign exchange supply reaches genuine retail users rather than being diverted or hoarded.
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