…CBN introduces central purchase tracker
The Central Bank of Nigeria has introduced a new regulatory and operational framework governing the purchase of foreign exchange by licensed Bureau De Change operators through Authorised Dealer Banks in the Nigerian Foreign Exchange Market.
The framework introduces a centralised electronic platform known as the FX BDC Purchase Tracker, through which the apex bank will monitor foreign-exchange purchases by BDC operators in real time or on the same day the transactions occur.
The directive was contained in a circular dated July 15, 2026, and signed by the Director of the CBN’s Trade and Exchange Department, Aderinola Shonekan.
According to the CBN, the framework is intended to improve transparency, regulatory compliance and liquidity in the retail segment of Nigeria’s foreign-exchange market.
The latest guidance follows the CBN’s February 10, 2026 circular permitting licensed BDC operators to purchase foreign exchange from any Authorised Dealer Bank of their choice at prevailing market rates.
Under that policy, each BDC was permitted to purchase a maximum of $150,000 weekly, subject to compliance with the applicable operational and regulatory requirements.
The new guidance provides more detailed rules covering eligibility, purchase requests, approvals, settlement, reporting, unutilised balances and the responsibilities of BDCs and participating banks.
The CBN directed all licensed BDC operators and Authorised Dealer Banks to familiarise themselves with the new modalities and comply with them immediately.
It warned that breaches of the circular or the accompanying guidance would attract regulatory sanctions.
Under the framework, only BDC operators possessing valid and subsisting CBN licences may purchase foreign exchange through Authorised Dealer Banks.
Operators whose licences have been suspended or who are subject to regulatory sanctions or operational restrictions will not be permitted to participate until the restrictions are lifted.
The regulator also imposed additional due-diligence obligations on banks dealing with BDC operators.
Authorised Dealer Banks must complete Know-Your-Customer and Customer Due Diligence checks before selling foreign exchange to a BDC.
They are also required to retain relevant corporate documents, verify ownership and operational information, conduct enhanced due diligence on BDCs considered high-risk and update customer records annually or whenever a material change occurs.
No foreign exchange may be disbursed to a BDC that fails to satisfy the prescribed KYC and due-diligence requirements.
The CBN will maintain the FX BDC Purchase Tracker as a central database for monitoring purchases made by BDCs through the official foreign-exchange market.
All participating BDC operators must register on the portal and submit details of their purchases in real time or on the same day.
The system is expected to help the regulator detect multiple purchases from different banks, monitor compliance with the $150,000 weekly limit and identify transactions conducted outside approved channels.
Authorised Dealer Banks will also be able to confirm whether a BDC has exhausted its weekly allocation through purchases made from another institution.
The framework preserves the right of every eligible BDC to select any Authorised Dealer Bank from which it wishes to purchase foreign exchange.
Banks are prohibited from imposing exclusive banking arrangements, charging referral fees or introducing conditions that restrict a BDC’s freedom to choose its preferred banking partner.
Existing relationships between banks and BDC operators may continue, but all future transactions must comply with the revised framework.
Existing KYC records must also be reviewed and updated to ensure that they meet the new requirements.
Authorised Dealer Banks must acknowledge foreign-exchange purchase requests submitted by BDC operators within two business hours.
The requesting BDC must be notified electronically whether its application has been approved or rejected.
Where a request is rejected, the bank must provide the reason for its decision.
Grounds for rejection may include incomplete KYC documentation, exhaustion of the $150,000 weekly purchase limit through another bank, unresolved compliance issues or concerns arising from the bank’s internal risk assessment.
The CBN directed that all transactions between BDC operators and Authorised Dealer Banks, as well as sales by BDCs to end-users, must be settled through accounts maintained with licensed financial institutions.
Foreign exchange purchased by a BDC must be credited only to the operator’s registered settlement account.
Transfers to an account belonging to another person or entity are prohibited and will constitute a regulatory violation that must be reported to the CBN.
The framework is intended to provide a traceable transaction trail from the initial purchase by the BDC to the eventual sale or utilisation by the approved end-user.
BDCs are prohibited from retaining foreign exchange purchased from the NFEM where the funds remain unutilised after the approved utilisation period.
Any unused balance must be sold back to the Nigerian Foreign Exchange Market within 24 hours after the utilisation period expires.
Failure to return the funds may result in regulatory sanctions, including forfeiture of the unused foreign exchange and suspension of the operator’s access to the official market.
BDCs must disclose any unused foreign-exchange balances from the preceding week whenever they submit a fresh purchase request.
Authorised Dealer Banks are required to take such disclosed balances into account when calculating whether the BDC has reached its weekly purchase limit.
Licensed BDC operators must continue submitting electronic returns to the CBN detailing their weekly purchases and sales.
The returns must disclose the volume of foreign exchange purchased, amounts sold to end-users, the categories of transactions supported, settlement details and any unutilised balances.
The reporting obligations are intended to enable the CBN to monitor how foreign exchange obtained from the official market is distributed and ensure that it is used only for permissible transactions.
The apex bank warned that violations of the framework could attract monetary penalties and suspension from accessing the Nigerian Foreign Exchange Market.
Serious or repeated breaches may also result in the suspension or withdrawal of a BDC licence.
Authorised Dealer Banks found to have assisted or participated in violations could lose their authorised-dealer status.
Where the conduct involved is suspected to be criminal, the affected institution or operator may also be referred to law-enforcement agencies for investigation and possible prosecution.
The CBN said the revised framework was designed to strengthen oversight of the retail foreign-exchange market, improve accountability and prevent the diversion, hoarding or unauthorised transfer of foreign exchange purchased through official channels.
The post “CBN Launches Digital Tracker For BDC Forex Purchases” — Retains $150,000 Weekly Cap, Orders Unused FX Returned Within 24 Hours appeared first on TheNigeriaLawyer.
