CBN extends BDCs’ access to dollar at NFEM to May 30

The Central Bank of Nigeria (CBN) has extended the temporary access granted to Bureau De Change (BDC) operators to purchase foreign exchange from the Nigerian Foreign Exchange Market (NFEM) to meet retail market demand for invisible transactions until May 30, 2025.

This extension, which was disclosed in a circular issued on Monday by W. J. Kanya, acting director of the Trade and Exchange Department, allows existing BDCs to continue accessing the market under the same terms and conditions previously set by the apex bank.

The circular, addressed to all BDC operators and the general public, referenced an earlier directive issued on December 19, 2024, under circular number TED/FEM/PUB/FPC/001/030. The directive had initially permitted BDCs to buy foreign exchange from authorised dealers, with a weekly cap of $25,000. The initial expiration date of January 31, 2025, has now been officially extended.

In the circular, the CBN stated: “The expiry date of January 31, 2025, which was granted in the above-mentioned circular, has been extended to May 30, 2025. All other terms and conditions in the above-mentioned circular remain unchanged.”

The decision aligns with the Central Bank of Nigeria (CBN)’s broader strategy to stabilise the foreign exchange market and ensure accessibility to retail forex demand for eligible invisible transactions. The apex bank reaffirmed its commitment to maintaining liquidity and managing price volatility, saying: “The CBN remains committed to a fully functional foreign exchange market and will continue to provide liquidity when necessary to manage price volatility.”

The extension provides relief to BDC operators and market participants who had been anticipating clarity on the bank’s stance regarding their access to foreign exchange. With foreign exchange volatility and ongoing reforms in the financial sector, the CBN’s decision signals a continued effort to regulate and stabilise the currency market while ensuring controlled access for BDCs.