Expectations of improved foreign exchange liquidity have strengthened across Nigeria’s financial markets following the decision of the Central Bank of Nigeria (CBN) to grant 82 recapitalised Bureau De Change (BDC) operators access to up to $150,000 weekly from the Nigerian Foreign Exchange Market (NFEM).
Industry stakeholders described the move as strategic and timely, noting that it is designed to ease dollar scarcity in the retail segment, narrow the gap between official and parallel market exchange rates, and reinforce confidence in the naira.
Under revised guidelines issued pursuant to the Banks and Other Financial Institutions Act (BOFIA) 2020, existing BDC operators were required to recapitalise and reapply for licences under newly defined categories.
Out of the applicants, only 82 operators met the stringent requirements and received final approval from the apex bank.
The new framework classifies BDCs into two tiers. Tier-1 BDCs are required to maintain a minimum capital base of N2 billion. They are permitted to operate nationwide, establish branches across states, and appoint franchisees, subject to regulatory approval.
Tier-2 BDCs, on the other hand, must maintain a minimum capital base of N500 million. Their operations are restricted to a single state or the Federal Capital Territory. They may establish up to five branches but are not allowed to appoint franchisees.
Market analysts say the inclusion of recapitalised BDCs in the official forex supply chain signals the CBN’s commitment to improving transparency and deepening liquidity in the retail segment of the foreign exchange market.
The development is also expected to reduce speculative pressures and support broader efforts to stabilise the naira as monetary authorities continue reforms aimed at restoring investor confidence and strengthening Nigeria’s external reserves position.
