The Central Bank of Nigeria (CBN) has introduced a temporary arrangement allowing Bureau de Change (BDC) operators to purchase up to $25,000 in foreign exchange weekly through the Nigerian Foreign Exchange Market (NFEM), which was launched earlier this month.
The policy, effective from December 19, 2024, to January 30, 2025, aims to address heightened demand for forex during the holiday season.
A circular dated December 19, 2024, signed by T.G. Allu on behalf of the CBN’s acting Director of Trade and Exchange, detailed the conditions of the initiative. The document highlighted that BDC operators must fully fund their accounts before accessing forex from a single authorized dealer of their choice at the prevailing NFEM rate. Additionally, operators are restricted to a maximum 1 percent spread when pricing forex for retail customers.
“To meet expected seasonal demand for foreign exchange, the CBN is allowing temporary access for all existing BDCs to the NFEM for the purchase of FX from authorised dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only). This window will be open between December 19, 2024 to January 30, 2025,” the circular read.
The CBN also emphasized that all transactions under this arrangement must be reported to its Trade and Exchange Department.
Furthermore, the apex bank reassured the public that Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) remain accessible through banks at market-determined exchange rates within the NFEM framework. It reiterated its commitment to maintaining a robust and liquid forex market while mitigating price volatility.
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