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The Central Bank of Nigeria (CBN) has granted temporary access to the National Financial Emergency Management System (NFEM) to Bureau De Change (BDC) operators from December 19, 2024, to January 30, 2025.
The apex bank said the participating BDCs will be allowed to access a maximum of $25,000 each week.
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Additionally, transactions require upfront funding at prevailing rates and must follow a maximum of one per cent spread.
In the circular, TED/FEM/PUB/FPC/001/030, addressed to all bureau de change operators and the general public tagged, ‘Sale of Foreign Exchange to BDCs to Meet Retail Market Demand for Eligible Invisible Transactions’, the apex bank said the step aims to bridge the expected seasonal demand for foreign exchange
“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing 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. This window will be open between December 19, 2024 to January 30, 2025,” it said.
The circular, which was signed by T.G Allu on behalf of the Acting Director of the Trade and Exchange Department, further said BDC operators can purchase FX under this arrangement from only one authorised
dealer of their choice and would be required to fully fund their account before accessing the market at the prevailing NFEM rate.
It added that all transactions with BDCs should be reported to the Trade and Exchange Department, noting that a maximum spread of one per cent is allowed on the pricing offered by BDCs to retail end-users.
“The general public is also reminded of the continued availability of PTA/BTA from their banks to meet their personal and business travel requirements, and that all legitimate and eligible foreign exchange transactions are expected to be completed in the NFEM at the market-determined exchange rate.
“The CBN remains committed to a fully functional foreign exchange market and will continue to provide liquidity when necessary to manage price volatility. Please be guided accordingly,” the circular stated.
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