The Central Bank of Nigeria (CBN) has extended the temporary access granted to Bureau de Change (BDC) operators for purchasing foreign exchange from the Nigerian Foreign Exchange Market (NFEM) until May 30, 2025.
The extension was announced in a circular issued on Monday by the Trade and Exchange Department of the apex bank. The circular, referenced TED/FEM/PUB/FPC/001/003 and signed by Dr. W. J. Kanya, Acting Director of the Trade & Exchange Department, refers to an earlier directive (TED/FEM/PUB/FPC/001/030) issued on December 19, 2024.
The previous directive, which initially allowed BDCs to source forex from authorised dealers under a weekly cap of $25,000, was set to expire on January 31, 2025. However, the CBN has now extended the deadline by four months.
“All other terms and conditions in the above-mentioned circular remain unchanged,” the CBN stated.
The extension underscores the CBN’s commitment to maintaining a functional foreign exchange market, ensuring liquidity, and addressing retail demand for eligible invisible transactions such as personal travel allowances, medical expenses, and educational fees.
The decision comes amid a notable decline in Nigeria’s foreign exchange reserves, which dropped by $1.11 billion in January 2025.
According to CBN data, the reserves stood at $40.88 billion on January 2 but had fallen to $39.77 billion by January 30, marking a 2.72% decrease within the month.
Analysts attribute this decline to CBN’s interventions in the forex market, external debt servicing obligations, and capital outflows. While the naira appreciated during the same period, the depletion of reserves suggests that the CBN may have utilized part of its FX holdings to stabilize the local currency and manage liquidity in the official market.
Over the past year, the CBN has introduced several measures to regulate foreign exchange access and curb speculation. These include stricter oversight of BDC operations, enhanced regulatory compliance enforcement, and reforms aimed at unifying exchange rates.
By allowing continued access to forex, the CBN aims to enhance liquidity in the retail market and ensure that BDCs can meet demand for personal and business-related transactions.
The latest extension signals a measured approach to managing forex demand while maintaining stability in the market amid global and domestic economic pressures.
