By Juliet Ezeh
The Central Bank of Nigeria (CBN) has reopened the Nigerian Foreign Exchange Market (NFEM) to licensed Bureau De Change (BDC) operators, a move aimed at easing the persistent dollar shortage in the retail segment and narrowing the gap between official and parallel market rates.
Under the new guidelines released on February 10, 2026, BDCs are now allowed to purchase up to $150,000 weekly from any authorised dealer bank, giving them more flexibility in sourcing foreign currency. The CBN has capped the maximum margin BDCs can charge at 1% above their buying rate, a measure designed to protect consumers from excessive rates.
For Nigerians who rely on BDCs for foreign exchange, this policy could bring relief from skyrocketing parallel market rates. By limiting how much BDCs can profit on transactions and requiring the sale of unutilised foreign exchange back to the market within 24 hours, the CBN hopes to curb hoarding and speculation that drive up prices. This means that consumers may now find more predictable and transparent rates at their local BDCs, rather than paying high premiums in the informal market.
Small and medium-sized businesses that depend on imported goods stand to benefit from improved access to dollars at regulated rates. With at least 75 percent of transactions required to be electronic, business owners will also enjoy safer and traceable FX transactions.
The CBN has strengthened regulatory requirements for BDCs. Tier 1 BDCs must maintain N2 billion in capital, while Tier 2 BDCs need N500 million. Full Know-Your-Customer checks are mandatory, and accurate electronic reporting to the CBN is compulsory, ensuring transparency and accountability in the market.
The market reacted positively. On February 16, 2026, the parallel market rate fell to approximately N1,390 per dollar, a 2.5 percent reduction in the spread, signaling early success in the CBN’s strategy to anchor retail FX demand within formal channels.
Economists and traders predict that if BDCs comply with the new rules, the dollar shortage in the retail segment could ease significantly in the coming weeks. However, sustained impact will depend on strict enforcement of the CBN’s hoarding and reporting rules. For everyday Nigerians, this development could mean more stability in foreign exchange rates and a more transparent FX market, making it easier for businesses and individuals to plan and budget.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.