The Central Bank of Nigeria (CBN) has announced that eligible Bureau de Change (BDC) operators will be granted temporary access to the Nigerian Autonomous Foreign Exchange Market (NAFEM) to purchase up to $25,000 weekly.
This special window will run from December 19, 2024, to January 30, 2025, to meet seasonal demand for foreign exchange.
The announcement was made in a statement on Thursday, signed by T.G. Allu, the acting director of the CBN’s trade and exchange department.
According to the statement, BDC operators will be able to purchase foreign exchange (FX) from authorised dealers, which are banks licensed by the CBN, to address retail market demands.
“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a 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 statement read.
BDC operators will, however, be required to meet specific conditions under this arrangement. “BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate,” the CBN stated.
The CBN also set a maximum spread of 1% on the pricing offered by BDCs to retail end-users and mandated that all transactions be reported to its trade and exchange department.
The apex bank further clarified that Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) remain available and can be accessed through authorised banks to meet travel requirements.
“All legitimate and eligible foreign exchange transactions are expected to be completed in the NFEM, at the market-determined exchange rate,” the statement added.
