CBN Launches Digital Tracker To Monitor BDC Forex Transactions In Real Time

The Central Bank of Nigeria (CBN) has introduced a new digital monitoring platform that will enable regulators to track foreign exchange purchases by Bureau De Change (BDC) operators in real time, as part of broader efforts to improve transparency and strengthen oversight of Nigeria's retail foreign exchange market.

The new platform, known as the FX BDC Purchase Tracker (FXBT), will require all licensed BDC operators to electronically report their foreign exchange purchases from authorised dealer banks either immediately after transactions are completed or before the close of business on the same day.

The directive was contained in a circular dated July 15, 2026 signed by the Director of the CBN's Trade and Exchange Department, Aderinola Shonekan.

The initiative builds on the apex bank's February 2026 policy that readmitted licensed Bureau De Change operators into the Nigerian Foreign Exchange Market (NFEM), allowing them to source foreign exchange directly from authorised dealer banks.

According to the CBN, the FXBT platform will serve as a central database for monitoring all foreign exchange purchases made by licensed BDCs from authorised banks.

The apex bank said the system is designed to improve transparency, strengthen regulatory compliance, enhance market surveillance and increase liquidity within the retail foreign exchange market.

Under the new framework, every licensed BDC must register on the portal and upload details of each foreign exchange purchase either in real time or on the same day the transaction occurs.

The CBN said the platform will allow regulators to identify irregular transactions, detect possible compliance breaches and monitor operators adherence to existing foreign exchange guidelines.

The framework provides that only Bureau De Change operators with valid licences will be eligible to purchase foreign exchange under the arrangement.

Operators whose licences have been suspended, restricted or are under regulatory sanctions will remain ineligible until those restrictions are lifted.

The CBN reaffirmed that each eligible BDC may purchase up to 150,000 US dollars per week from authorised dealer banks at prevailing market rates, in line with its February 2026 policy.

The apex bank also directed authorised dealer banks to carry out comprehensive Know Your Customer (KYC) and customer due diligence checks before onboarding any Bureau De Change operator.

Required documentation includes valid operating licences, Corporate Affairs Commission (CAC) registration documents, Tax Identification Numbers (TIN) and information identifying the beneficial owners of each BDC.

Banks have also been instructed not to sell foreign exchange to operators that fail to satisfy regulatory compliance requirements.

To encourage competition and prevent market distortions, the CBN prohibited banks from compelling BDCs to transact exclusively with them or imposing referral fees that could restrict access to other authorised dealer banks.

Under the revised framework, Bureau De Change operators must submit foreign exchange purchase requests electronically through the designated portal of their chosen authorised dealer bank.

Banks are required to acknowledge such requests within two business hours and communicate approvals or rejections immediately after processing.

According to the CBN, requests may only be rejected on clearly defined grounds, including incomplete documentation, unresolved compliance issues, exceeding the weekly purchase limit or internal risk management considerations.

The CBN also introduced stricter controls governing the use of foreign exchange purchased through the official market.

The regulator directed that all transactions between banks and Bureau De Change operators as well as transactions between BDCs and their customers, must be conducted through accounts maintained with licensed financial institutions.

Third-party transactions remain prohibited under the new framework.

In addition, any foreign exchange purchased through the official market but left unused after the approved utilisation period must be resold into the market within 24 hours.

The apex bank warned that failure to comply with this requirement could result in forfeiture of the funds and suspension of the affected operator from participating in the foreign exchange market.

BDC operators are also required to declare any unused balances from previous allocations whenever they apply for fresh purchases, while banks must consider those balances before determining new weekly allocations.

Beyond the real-time reporting requirement through the FXBT platform, the CBN said Bureau De Change operators must continue submitting their statutory weekly returns.

The reports are expected to contain detailed information on foreign exchange purchases from banks, sales to end-users, settlement records and outstanding unused balances.

According to the apex bank, the reporting framework will strengthen transparency and provide regulators with better visibility into foreign exchange flows across the retail segment of the market.

The CBN warned that violations of the new framework could attract sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Foreign Exchange Act.

Possible penalties include financial sanctions, suspension from the foreign exchange market, withdrawal of Bureau De Change licences, revocation of banks' authorised dealer status and referrals to law enforcement agencies where criminal violations are established.

The apex bank said compliance will be monitored through routine and unannounced inspections coordinated by its Trade and Exchange Department in collaboration with other regulatory units.

The introduction of the FXBT platform represents another phase of the Central Bank's ongoing efforts to reform Nigeria's foreign exchange market following the reintroduction of licensed Bureau De Change operators into the official market earlier this year.

The CBN said the initiative is intended to improve market transparency, discourage speculative trading, strengthen regulatory oversight and restore confidence in Nigeria's foreign exchange system.

The reforms also seek to ensure that foreign exchange allocations are utilised for legitimate retail demand while limiting opportunities for market abuse.