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The Central Bank of Nigeria (CBN) has capped the amount of foreign exchange cash sales by Bureau de Change (BDC) operators at $5,000 per transaction. This policy, outlined in the Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for the 2024/2025 fiscal years, aims to regulate the foreign exchange market, promote stability, and ensure compliance across the sector.
BDC operators make profits by purchasing foreign currency and reselling it at a higher exchange rate. However, the new guideline restricts the amount of foreign currency any customer can obtain in cash at one time from a BDC to a maximum of $5,000. This cap is part of the CBN’s broader strategy to manage foreign exchange reserves and prevent currency misuse.
The guidelines also allow for the pooling of funds, permitting authorised dealers, including BDC operators, to combine foreign exchange acquired from the CBN with funds sourced from other avenues, provided the origins of the funds are properly identified and reported. This measure aims to ensure transparency in foreign exchange transactions.
In addition, the CBN has mandated that authorised dealers must continue to submit statutory returns regarding the sources and usage of funds to ensure accountability throughout the foreign exchange market.
Another regulation in the policy requires travellers entering or exiting Nigeria with amounts exceeding N100,000 or $10,000 to declare the sums at the country’s borders. This requirement is designed to enhance transparency in currency movements and assist in statistical data collection. Travellers with funds exceeding these thresholds must declare them upon arrival or departure using the Travel Import and Travel Export forms.
The CBN reserves the right to adjust these thresholds as necessary, stating, “Travellers entering or leaving Nigeria shall be required to declare any amount in excess of N100,000 and any amount in excess of $10,000 or its equivalent.”
Additionally, the policy limits advance payments for imports to 15 percent of the free-on-board (FOB) value of transactions, aligning with the Public Procurement Act of 2007. The maximum cash sales limit for BDC operators remains at $5,000 per approved transaction.
Authorised dealers are also allowed to pool funds from different sources, provided the origins are clearly reported to the CBN, enabling them to deal with autonomous funds while maintaining accountability in foreign exchange transactions.
Furthermore, the guidelines include caps on business and personal travel allowances, with maximum amounts set at $5,000 and $4,000 per quarter, respectively. The policy states, “Business Travel Allowance and Personal Travel Allowance shall be subject to a maximum of $5,000 and $4,000 per quarter, respectively.”
In response to these regulations, the CBN has required all existing BDC operators to reapply for new licenses under their preferred category. However, the Association of Bureau de Change Operators of Nigeria (ABCON) has expressed opposition to the new licensing guidelines, calling them inconsistent with global best practices.
ABCON President Alhaji Aminu Gwadabe commented on the matter, saying, “This is not a new development. Our members are aware of the $5,000 per transaction limit. The central bank is simply advising us to comply with the guideline.”
The CBN has reiterated that these adjustments aim to streamline BDC operations and improve financial accessibility in Nigeria.
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