CBN Formalizes Dollar Sales to Bureau De Change Operators Amid Naira Improvement, List BDCs in Nigeria (Full List)

By Medinat - Editor
CBN Formalizes Dollar Sales to Bureau De Change Operators Amid Naira Improvement, List BDCs in Nigeria (Full List)

In a bid to address price distortions and narrow the exchange rate premium in the foreign exchange market, the Central Bank of Nigeria (CBN) has unveiled plans to sell forex to bureau de change (BDC) operators at a rate of N1,301 per dollar.

The decision, aimed at meeting retail demand for eligible invisible transactions, was announced by Hassan Mahmud, a director at the Trade and Exchange Department of the CBN. This move comes as part of ongoing reforms to achieve a market-determined exchange rate for the naira.

The statement issued by the CBN highlighted the necessity of providing foreign exchange to BDCs to mitigate distortions observed at the retail end of the market, which have been contributing to parallel market activities.

Under the new directive, each eligible BDC will be allotted $20,000 at the rate of N1,301/$1, representing the lower band rate of executed spot transactions at the Nigerian Autonomous Foreign Exchange Market (NAFEM) for the previous trading day.

Furthermore, the CBN emphasized that all BDCs must sell to end-users at a margin not exceeding one percent above the purchase rate from the CBN. The directive also requires BDCs to make naira payments to designated CBN foreign currency deposit accounts and submit necessary documentation for disbursement at specific CBN branches in Abuja, Awka, Lagos, and Kano.

Additionally, the CBN released a comprehensive list detailing the distribution of BDCs across states in Nigeria. According to the list, Lagos has the highest number of BDCs, followed by Abuja and Kano.

This initiative by the CBN aims to enhance transparency and efficiency in the forex market while supporting the stability and strength of the Nigerian currency.

FULL LIST: 52% of BDCs in Nigeria are in Lagos

  1. Lagos: 2,958
  2. Abuja: 1,179
  3. Kano: 981
  4. Anambra: 259
  5. Kaduna: 55
  6. Abia: 50
  7. Oyo: 32
  8. Enugu: 25
  9. Rivers: 24
  10. Delta: 21
  11. Sokoto: 18
  12. Imo: 15
  13. Edo: 14
  14. Borno: 11
  15. Bauchi: 7
  16. Kwara: 7
  17. Plateau: 6
  18. Ebonyi: 4
  19. Kebbi: 4
  20. Niger: 3
  21. Ogun: 3
  22. Katsina: 3
  23. Akwa Ibom: 2
  24. Cross River: 2
  25. Gombe: 2
  26. Kogi: 2
  27. Bayelsa: 1
  28. Benue: 1
  29. Nasarawa: 1

Total: 5,690

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