The Central Bank of Nigeria (CBN) has introduced a new policy limiting bureau de change operators to a maximum foreign exchange cash sale of $5,000 per approved transaction.
This regulation is part of the Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024/2025, aimed at ensuring stability in the foreign exchange market and compliance with existing financial regulations.
Bureau de change operators, who profit by buying and selling foreign currencies, will now be restricted in the amount of foreign currency that can be sold in cash to customers at one time. This measure is intended to manage the country’s foreign exchange reserves effectively and reduce the potential for misuse of foreign currency.
In addition to the cash sales limit, the new guidelines allow authorized dealers, including bureau de change operators, to pool funds from various sources, provided they identify and report the origins of those funds. This provision aims to enhance transparency in foreign exchange transactions.
The CBN emphasized the importance of accountability, stating that all authorized dealers must continue to submit appropriate statutory returns regarding the sources and utilization of funds. Furthermore, travelers entering or leaving Nigeria with more than N100,000 or $10,000 will be required to declare these amounts at the borders. This regulation seeks to ensure transparency in currency movements and assist in statistical data collection.
The guidelines also specify that any traveler carrying amounts exceeding these thresholds must declare them using Travel Import and Travel Export forms upon arrival or departure. The CBN reserves the right to adjust these limits as necessary.
Additional provisions include a cap on advance payments for imports, set at 15 percent of the free-on-board value of transactions, aligning with the Public Procurement Act of 2007. Business Travel Allowance is limited to $5,000 per quarter, while Personal Travel Allowance is capped at $4,000.
The CBN has mandated all existing bureau de change operators to reapply for new licenses in their preferred categories. However, this new licensing requirement has faced pushback from the operators, who argue that it contradicts global best practices.
In response, President of the Association of Bureau de Change Operators of Nigeria (ABCON) Aminu Gwadabe noted that the $5,000 transaction limit was not a surprise to members, stating, “The central bank is just advising us to abide by the guideline.”
The CBN’s adjustments are part of broader efforts to streamline operations within the bureau de change sector and enhance financial accessibility while maintaining control over the foreign exchange market.
