The Central Bank of Nigeria (CBN) has extended its approval for Bureau de Change (BDC) operators to purchase foreign exchange from authorised dealers in a bid to meet retail market demand for eligible invisible transactions.
The new deadline is now set for 30 May, according to a circular issued on Monday by the Trade and Exchange Department of the regulator.
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The extension follows an earlier directive, TED/FEM/PUB/FPC/001/030, dated 19 December 2024, which granted temporary access to existing BDCs to source FX from the Nigerian Foreign Exchange Market (NFEM).
The arrangement, originally due to expire on 31 January, allows BDCs to buy foreign currency subject to a weekly cap of $25,000 per operator.
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“All other terms and conditions in the above-mentioned circular remain unchanged,” the circular stated.
The apex bank reaffirmed its commitment to maintaining a fully functional foreign exchange market and pledged to provide liquidity when necessary to manage price volatility.
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The move is expected to stabilise the retail FX market, where access to foreign exchange remains a challenge for small businesses and individuals seeking dollars for travel, education, and medical expenses abroad.
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The decision comes amid a decline in Nigeria’s foreign exchange reserves, which fell by $1.11 billion in January, highlighting sustained pressures on the country’s external buffers.
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