…found diverting funds

The Central Bank of Nigeria (CBN) has announced that it will suspend the dealership licenses of any Bureau de Change (BDC) operators or Authorised Dealer banks found diverting funds or violating its newly implemented foreign exchange trade guidelines.

In a statement issued on Tuesday, the CBN, through its Acting Director of Trade and Exchange Department, Dr. W.J Kanya, emphasized that these guidelines were introduced following the temporary approval granted to existing BDCs to purchase foreign exchange from Authorised Dealers, with a weekly limit of $25,000.

Additionally, the apex bank has set a maximum disbursement limit of $5,000 per transaction on a quarterly basis for BDCs.

Key Guidelines for Foreign Exchange Transactions
The CBN outlined the following conditions for foreign exchange transactions involving BDCs and Authorised Dealer Banks:

Authorised Dealers are permitted to sell a maximum of $25,000 per week to each BDC.

A BDC must purchase foreign exchange from only one preferred Authorised Dealer Bank per week, and any violation of this rule will result in sanctions.

The selling rate for foreign exchange from Authorised Dealers to BDCs must align with the prevailing daily rate at the Nigerian Foreign Exchange Market (NFEM) window.
BDCs must sell foreign exchange to end-users at a maximum margin of 1% above the buying rate.

The 1% margin limit applies to all funds retailed by BDCs, regardless of their source.

Authorised Dealer Banks are required to submit weekly reports on sales to BDCs using the specified reporting format, sending them to the CBN’s Trade & Exchange Department via [email protected].
BDCs must also submit daily transaction reports detailing foreign exchange purchases from Authorised Dealer Banks and other sources, as well as utilization records, on the Financial Institutions Forex Reporting System (FIFX).
Permitted Uses and Compliance Measures
Funds obtained by BDCs can only be disbursed for the following transactions, with a quarterly transaction limit of $5,000:

Business Travel Allowance (BTA) / Personal Travel Allowance (PTA)
Overseas school fees
Overseas medical fees
BDC operators must maintain detailed records of all transactions, including:

The Bank Verification Number (BVN) of each end-user.
Endorsement of the disbursed amount in the beneficiary’s international passport.

The CBN also reiterated the importance of strict adherence to Anti-Money Laundering (AML) laws and Know Your Customer (KYC) protocols in handling foreign exchange transactions.
Penalties for Non-Compliance
The CBN warned that any Authorised Dealer Bank or BDC operator found violating these guidelines, including fund diversion, will face severe sanctions, which may include suspension of their dealership licenses.

The Central Bank of Nigeria (CBN) has extended the timeframe for eligible bureau de change (BDC) operators to access the Nigerian Autonomous Foreign Exchange Market (NAFEM) for foreign exchange (FX).

On December 20 2024 CBN granted BDC operators temporary access to NAFEM to purchase $25,000 weekly from December 19, 2024, to January 30, 2025.

CBN said BDCs will purchase FX from authorised dealers, which are banks licenced by the apex bank to deal in foreign exchange, to meet retail market demand.

However, in a circular on Monday by W.J. Kanya, acting director, trade and exchange department, CBN said the deadline has been extended to May 30.

“We refer to our circular TED/FEM/PUB/FPC/001/030 dated December 18, 2024, which granted temporary access to existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD25,000.00,” the statement reads.

“The expiry date of January 31 2025 which was granted in the above mentioned circular has been extended to May 30, 2025.

“All other terms and conditions in the above mentioned circular remain unchanged.

“The CBN remains committed to fully functional foreign exchange market and will continue to provide liquidity when necessary to manage price volatility.”

Other sources of FX for BDC operators, according to a statement by the CBN on February 24, 2024, are tourists, returnees from the diaspora, and expatriates with foreign exchange inflows from work, travel, investment or their domiciliary accounts.

Also mentioned are residents with foreign exchange inflows from work, travel, investment or their domiciliary accounts, International Money Transfer Operators (IMTOs), embassies and hotels that are authorised buyers of FX.

The official naira black market exchange rate in Lagos and FCT, Abuja today including the Black Market rates, Bureau De Change (BDC), and CBN rates.

According to Bureau De Change (BDC) sources in the Ogba and Ikeja axis of Lagos state, the exchange rate for a dollar to naira at the Parallel Market (Black Market) is N1700 on Monday, February 3rd, 2024, players bought a dollar for N1685 and sold it for N1700.

Bureau De Change (BDC) sources in Gwarimpa and Gwagwalada in FCT buy a dollar for N1685 and sell it for N1700 on Friday, February 3rd, 2024.

Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.

Dollar to Naira Black Market Rate Lagos
Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Buying Rate N1685
Selling Rate N1700
Dollar to Naira Black Market Rate FCT, Abuja
Dollar to Naira (USD to NGN) CBN Rate Today
Buying Rate N1685
Selling Rate N1700
Please note that the rates you buy or sell forex may differ from what is captured in this article because prices vary from state to state across Nigeria.