CBN to Unveil New Guidelines for BDC Operators as Naira Gains in Parallel Market
The Central Bank of Nigeria is poised to release new operational guidelines for Bureau De Change operators this week, marking a significant step in its ongoing efforts to stabilize the country's foreign exchange market. This development comes as the naira recorded a sharp appreciation in the parallel market, strengthening to N1,390 per dollar on Monday, February 16, 2026, further narrowing the exchange rate gap between the official and black market windows.
Confirmation from BDC Association President
Aminu Gwadabe, the president of the Association of Bureaux De Change Operators of Nigeria, confirmed that the long-awaited operational framework for licensed Bureau De Change operators will be unveiled within the week. According to him, the guidelines will pave the way for the full commencement of foreign exchange trading activities by BDCs in the official market.
"The operationalisation guidelines will be released within the week for the takeoff of trading," Gwadabe said, indicating that the apex bank is moving cautiously to ensure a smooth rollout. Market analysts suggest that this development is expected to restore structure and transparency to retail dollar sales, which the parallel market has largely dominated in recent months.
Naira's Significant Appreciation
The naira's appreciation to N1,390 per dollar represents a substantial gain compared to last week's levels. More importantly, it has reduced the spread between the official and parallel markets by 2.5 percent, equivalent to about N35. Just days earlier, the gap stood at over 6 percent, or roughly N92, highlighting the rapid pace at which the disparity is narrowing.
Currency traders attribute this improvement to renewed confidence following regulatory clarity from the apex bank and expectations of improved dollar liquidity in the retail segment. This positive momentum is seen as a direct result of the CBN's recent policy adjustments aimed at enhancing market stability.
Reopening of Official FX Window to BDCs
On February 10, 2026, the Central Bank of Nigeria reopened access to the official foreign exchange market for licensed BDC operators. This decision allows qualified BDCs to purchase foreign exchange directly from the Nigerian Foreign Exchange Market through authorised dealer banks at prevailing market rates.
The move is designed to boost dollar supply at the retail level, reduce speculative activities, and ease persistent pressure in the parallel market. In a circular issued on February 10, the apex bank clarified that only duly licensed BDCs are eligible to participate, reinforcing its commitment to regulatory compliance and market discipline.
What the New Guidelines Could Mean
Industry watchers expect the forthcoming guidelines to define:
- Trading limits for BDC operators
- Documentation requirements
- Compliance obligations
- Reporting standards
Clear operational rules are seen as essential in preventing arbitrage and ensuring that official market access translates into real liquidity improvements. If effectively implemented, the framework could deepen confidence in Nigeria's foreign exchange system, reduce volatility, and further compress the exchange rate gap.
Market Impact and Future Outlook
For businesses and individuals reliant on retail dollar transactions, the reforms may signal improved accessibility and more stable pricing in the weeks ahead. With the naira already showing signs of recovery, market participants are closely watching the rollout of the new rules, which could determine whether the recent gains are sustained or merely temporary.
The CBN's recent directive permits each licensed BDC to purchase up to $150,000 per week at prevailing market rates through authorised dealer banks. This move is aimed at boosting dollar liquidity in the retail segment and easing sustained pressure in the parallel market. The decision was contained in a circular issued by the CBN's Trade and Exchange Department and signed by its director, Musa Nakorji, applying to all duly licensed BDC operators across the country.
As the naira continues to appreciate and the exchange rate gap narrows, the successful implementation of these new guidelines will be crucial in determining the long-term stability of Nigeria's foreign exchange market. Market observers remain cautiously optimistic that these measures will lead to sustained improvements in currency valuation and market transparency.
