CBN Tightens FX Market Oversight With New BDC Monitoring Framework

The Central Bank of Nigeria (CBN) has introduced a comprehensive real-time monitoring framework for Bureau De Change (BDC) operators, unveiling a centralized transaction-tracking platform aimed at strengthening oversight, improving transparency, and enhancing compliance across Nigeria’s foreign exchange market.

Under the new framework, all licensed BDC operators will be required to report their foreign exchange purchases through a newly established FX BDC Purchase Tracker (FXBT), a centralized portal that will enable the apex bank to monitor transactions in real time or on the same day they occur.

The directive was contained in a circular signed by the Director of the CBN’s Trade and Exchange Department, Aderinola Shonekan.

According to the CBN, the framework is designed to support the implementation of its February 2026 policy that reintroduced licensed Bureau De Change operators into the Nigerian Foreign Exchange Market (NFEM), allowing them to purchase foreign exchange directly from Authorised Dealer Banks.

The apex bank said the new measures are intended to improve transparency, strengthen regulatory oversight, boost liquidity in the retail foreign exchange market, enhance compliance with foreign exchange regulations, and ensure orderly participation by market operators.

“The CBN shall maintain a centralised portal, the FX BDC Purchase Tracker (FXBT) to which all BDCs shall be registered and submit real-time or same-day data on BDC purchases, enabling systemic compliance and oversight,” the circular stated.

The CBN explained that the centralized platform would provide regulators with greater visibility into transaction flows across the retail foreign exchange market, enabling it to detect breaches of regulatory limits, identify suspicious transactions, monitor compliance more effectively, and strengthen confidence in the foreign exchange ecosystem.

The new framework builds on the apex bank’s February 10, 2026 directive permitting eligible BDC operators to purchase up to $150,000 per week from Authorised Dealer Banks at prevailing market rates.

The policy was introduced to improve liquidity in the retail segment of the foreign exchange market and ensure that legitimate end-user demand is adequately served.

With the introduction of the FXBT platform, regulators will now be able to track how those allocations are utilized in near real time.

The CBN also clarified that only BDCs with valid and subsisting operating licences would be eligible to access foreign exchange under the framework.

Operators whose licences have been suspended, restricted, or are under regulatory sanctions will remain excluded until such restrictions are lifted.

To strengthen compliance, the apex bank directed Authorised Dealer Banks to conduct comprehensive Know Your Customer (KYC) and Customer Due Diligence checks before onboarding any BDC.

Banks are required to verify current operating licences, Tax Identification Numbers (TIN), Corporate Affairs Commission (CAC) registration documents, beneficial ownership information, and undertake enhanced due diligence for higher-risk entities.

The CBN stressed that no foreign exchange should be sold to any BDC that fails to satisfy the prescribed compliance requirements.

In a move aimed at promoting competition and ensuring equal access to foreign exchange, the apex bank prohibited banks from entering into exclusive arrangements with BDC operators.

Under the new rules, BDCs may source foreign exchange from any Authorised Dealer Bank of their choice, while banks are barred from imposing exclusivity agreements, referral fees, or any condition that restricts a BDC’s ability to transact with other banks.

BDC operators seeking foreign exchange must submit electronic purchase requests through banks’ designated portals.

Banks are expected to acknowledge receipt within two business hours and communicate approval or rejection immediately after processing.

The CBN stated that requests may only be rejected on clearly defined grounds, including incomplete KYC documentation, breaches of the weekly purchase limit, unresolved compliance concerns, or internal risk management considerations.

The apex bank also tightened rules governing the utilization of foreign exchange purchased through the Nigerian Foreign Exchange Market.

It directed that all transactions between banks and BDCs, as well as transactions between BDCs and end-users, must be conducted exclusively through accounts maintained with licensed financial institutions. Third-party transactions remain prohibited.

In addition, BDC operators will not be allowed to retain unutilized foreign exchange purchased through the market. Any unused balance must be sold back into the market within 24 hours after the expiration of the permitted utilization period.

Operators are also required to disclose any unutilized balances from previous allocations when submitting new purchase requests, while banks must factor such balances into weekly allocation calculations.

The CBN warned that failure to comply could result in forfeiture of the funds and suspension of access to the Nigerian Foreign Exchange Market.

Beyond the real-time reporting requirement under the FXBT platform, licensed BDCs are expected to continue submitting weekly electronic returns detailing total foreign exchange purchased from banks, sales to end-users by transaction category, unutilized balances, and settlement and reconciliation records.

According to the apex bank, the enhanced reporting requirements are intended to improve transparency and strengthen regulatory monitoring of foreign exchange flows within the retail market.

The CBN warned that breaches of the framework would attract sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Foreign Exchange Act.

Potential penalties include monetary fines, suspension of access to the Nigerian Foreign Exchange Market, suspension or revocation of BDC licences, withdrawal of Authorised Dealer status for banks found complicit in violations, and referrals to law enforcement agencies where criminal conduct is suspected.

The apex bank added that its Trade and Exchange Department will coordinate supervisory activities under the framework through both on-site and off-site examinations, including unannounced inspections, in collaboration with other relevant departments.

The latest measures underscore the CBN’s ongoing efforts to improve transparency, strengthen regulatory compliance, and reinforce stability in Nigeria’s foreign exchange market as it continues broader reforms aimed at enhancing investor confidence and ensuring a more efficient and orderly retail FX market.