CBN Lifts Ban on BDC Operators

The Central Bank of Nigeria (CBN) has discontinued its ban on Bureau De Change (BDC) operators in Nigeria’s foreign exchange market.

This is following the reported anti-graft agency crackdown on BDC operations in Nigeria by the apex bank over its ongoing reforms to control the dollarization of naira in the financial market.

However, CBN to this effect also issued a circular requesting BDC stakeholders’ inputs in its revised guidelines for sales or exchange of foreign currency, hence its discontinuation on the dollar-naira crackdown show.

In the recent circular released on the 27th of February 2024, the CBN directed the resumption of sales of foreign exchange to eligible BDC operators to engage in retail transactions of dollar to naira.

The statement in part reads:

All BDCs are allowed to sell to end-users at a margin NOT MORE THAN one percent (1%) above the purchase rate from the CBN.

Furthermore, all eligible BDCs are directed to make the Naira payment to the designated CBN Foreign Exchange Currency Deposit Accounts and submit confirmation of payments, with other necessary documentation for disbursement at the appropriate CBN Branches, including Abuja, Kano, Lagos, and Awka.

Meanwhile, the Naira to dollar rate to be sold is marked by the apex bank at N1,300/$1.

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About The Author

Mayowa Durosinmi

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Mayowa Durosinmi is a Nigerian investigative reporter for West Africa Weekly with reports focusing on politics, human rights, security and health in West Africa and the Sahel region.

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