The naira on Monday climbed to a two-year high of N1,347.78 per dollar in the official foreign exchange (FX) market, further narrowing the spread with the black market, as Bureau De Change (BDC) operators await trading guidelines from the Central Bank of Nigeria (CBN) this week.
Data published by the apex bank showed that the naira appreciated by N7.64, representing a gain of 0.57 percent compared to N1,355.42 recorded on Friday at the Nigerian Foreign Exchange Market (NFEM).
In the parallel market, also known as the black market, the local currency strengthened sharply on Monday to close at N1,380 per dollar after opening at N1,390 per dollar earlier in the day. The appreciation further narrowed the gap between the parallel market and the official FX window by 2.4 percent. The naira gained N40 per dollar to close at N1,380, reflecting a 2.89 percent improvement from N1,420 recorded on Friday in the black market.
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The rally across segments of the FX market has reduced the exchange rate spread to N33 from N92 recorded on Wednesday last week, signalling sustained convergence between the official and informal markets.
Aminu Gwadabe, president of the Association of Bureaux De Change Operators of Nigeria (ABCON), disclosed on Monday that the long-awaited operational framework to guide licensed BDC participation in the official market is imminent.
He said, “The operationalisation guidelines will be released within the week for the takeoff of trading.”
On February 10, 2026, the Central Bank reopened access to the official foreign-exchange market for licensed BDCs, a move aimed at improving dollar liquidity in the retail segment and easing sustained pressure in the parallel market.
In a circular, the CBN stated that all duly licensed BDCs are permitted to purchase foreign exchange from the NFEM through any authorised dealer bank of their choice at prevailing market rates.
Analysts at the Financial Market Dealers Association (FMDA) said BDC participation in the NFEM will broaden the formal FX market by increasing the number of authorised participants, deepening market liquidity, improving distribution, and enhancing price discovery.
In September 2025, the CBN confirmed that 82 BDC operators had been fully licensed to commence operations from November 27, in line with the bank’s revised regulatory framework for Nigeria’s foreign-exchange market.
Under the framework, authorised dealer banks are required to conduct full know-your-customer checks and due diligence on BDC clients in accordance with regulatory standards and internal risk-management policies. Upon completion, banks may sell foreign currency to BDCs strictly for eligible retail transactions, subject to a weekly cap of 150,000 dollars per bureau.
The apex bank said the measure is intended to ensure adequate foreign-exchange supply for legitimate end-user demand, particularly in the retail segment, following episodes of renewed volatility in the naira and widening spreads between official and informal rates.
The guidelines impose strict utilisation controls. Any foreign exchange purchased but not deployed must be resold into the market within 24 hours, as BDCs are prohibited from holding positions funded through the official window. All licensed operators are also mandated to submit timely and accurate electronic transaction returns to the CBN.
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Settlement of FX transactions must be conducted exclusively through accounts with licensed financial institutions. Third-party settlements are prohibited, while cash transactions are limited to 25 percent of each deal, reinforcing the regulator’s push to curb cash-based FX activity and strengthen traceability.
The rules apply to all transactions and take immediate effect, according to the circular signed by Musa Narkoji, director of the Trade and Exchange Department.
The policy shift marks a significant recalibration of the Central Bank’s FX strategy, reintegrating BDCs into the formal market after years of restrictions, as authorities seek to stabilise the naira, strengthen price discovery, and restore confidence in Nigeria’s fragmented foreign-exchange system.
