The Central Bank of Nigeria has rolled out a sweeping new regulatory framework to govern how Bureau De Change operators buy foreign exchange from commercial banks.

At the heart of this policy is the introduction of a centralized electronic portal, designed to clamp down on market manipulation, boost liquidity in the retail market, and ensure strict compliance.

The directive, signed by Aderinola Shonekan, the director of the apex bank’s Trade and Exchange Department, builds on previous guidelines that originally granted licensed BDCs access to foreign exchange through Authorised Dealer Banks.

The updated rules take effect immediately, and the regulator has warned that any breach of the new guidelines will attract heavy sanctions.

The central bank’s updated framework introduces several key operational shifts to the foreign exchange market.

Under the new rules, only BDCs holding valid and active licenses from the central bank will be permitted to purchase foreign exchange. Any operator currently facing regulatory sanctions, license suspensions, or operational restrictions is strictly barred from the market until those penalties are formally lifted.

Commercial banks are now under strict orders to perform thorough Know-Your-Customer and Customer Due Diligence checks. They must update customer records annually, carry out extra checks on high-risk operators, and refuse to disburse any foreign exchange to any operator that fails to meet these requirements.

To track transaction patterns, the regulator has launched a centralized platform called the FX BDC Purchase Tracker. BDCs are required to register on this system and submit their transaction and purchase data in real time or on the same business day.

While BDCs retain the right to buy foreign exchange from any commercial bank of their choice, the new rules strictly prohibit banks from forcing operators into exclusivity agreements or demanding referral fees. Additionally, banks must acknowledge any foreign exchange purchase request within two business hours. If a bank rejects a request, they must electronically send a clear reason to the operator, such as incomplete paperwork or the exhaustion of the operator’s weekly one hundred and fifty thousand dollar purchase limit at another financial institution.

The guidelines also dictate that all foreign exchange deals between BDCs, commercial banks, and end-users must go through registered bank accounts. Third-party transfers are banned, meaning all purchased foreign exchange can only be sent to the BDC’s officially registered settlement account.

Furthermore, operators are prohibited from hoarding foreign exchange. Any unutilized foreign exchange purchased through the market must be sold back within twenty-four hours after the utilization period ends. Operators must also declare any leftover balances from the previous week when submitting new purchase requests, and banks are required to deduct these amounts from the operator’s weekly purchase limit.

To maintain oversight, BDCs must continue submitting detailed weekly electronic reports. These filings must outline their total purchases, sales to customers, leftover balances, and transaction breakdowns.

The regulator has warned that any financial institution or operator caught violating these guidelines will face severe consequences. Penalties include steep monetary fines, immediate suspension from the foreign exchange market, the loss of foreign exchange dealer status for complicit banks, the outright revocation of operating licenses, and a direct referral to law enforcement agencies if criminal activity is suspected.