Naira trades below N1,350/$ amidst new BDC regulations
The Nigerian naira closed at N1,350 against the United States dollar at the official foreign exchange market on Wednesday, a day after hitting N1,349, which was the first time in 15 months that the local currency has traded below the N1,350/$ threshold. Data from the Nigerian Foreign Exchange Market (NFEM) showed the currency appreciated from […]
The Nigerian naira closed at N1,350 against the United States dollar at the official foreign exchange market on Wednesday, a day after hitting N1,349, which was the first time in 15 months that the local currency has traded below the N1,350/$ threshold.
Data from the Nigerian Foreign Exchange Market (NFEM) showed the currency appreciated from N1,354.9 per dollar recorded on Monday, extending its recent rally amid improving dollar liquidity and renewed confidence in the market.
By Tuesday, the naira further appreciated to N1,349 to a dollar before closing yesterday at N1,350 after recording the lowest rate of N1,345 during the day’s trading.
The latest performance represents the naira’s strongest level since May 29, 2024, when it closed at N1,329.65/$, highlighting a gradual but steady recovery after months of volatility that saw the currency weaken sharply across both official and parallel market segments.
Market data indicates that liquidity conditions in the official window have improved in recent weeks, driven by increased oil receipts, diaspora remittances, and portfolio investor inflows seeking to take advantage of elevated interest rates.
Daily Trust reports that the rally comes amidst new regulations by the Central Bank of Nigeria (CBN) on Tuesday, returning the Bureau De Change (BDC) operators into the market.
The CBN had introduced a new foreign exchange policy permitting licensed BDC operators to purchase United States dollars directly from the Nigerian Foreign Exchange Market (NFEM), setting a weekly purchase limit of $150,000 per operator.
The move, the CBN said, is part of the apex bank’s broader strategy to improve dollar liquidity in the retail segment of the market and ensure that individuals and small businesses with legitimate foreign exchange needs have better access to funds.
In a circular dated February 10, 2026 and signed by the Director of the Trade and Exchange Department, Dr. Musa Nakorji, the CBN said all properly licensed BDCs are now eligible to source foreign currency from any Authorised Dealer Bank at prevailing market rates.
This marks a significant shift from previous restrictions that limited where BDCs could obtain their supply.
…BDC operators hail new directive
Speaking with our correspondent yesterday, President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe stated that the new directive would boost dollar liquidity.
He said, “The recent clarification of the CBN to allow access for the BDCs operators to NFEM window through the Deposit Money Banks (DMBs) is highly commendable and statement of the CBN commitment to enhance financial inclusion, increase liquidity at the critical retail end of the market, reduce wider margin between the NFEM and the unregulated market.
“On behalf of our members we thank the CBN Management for their clarity, support, inclusiveness and guidance always. The new Circular will no doubt positively impact the stability of our local currency value.
It will also address the stubborn and lingering wider margin between the NFEM rate and the unregulated market.”
He charged members to “ensure their strictest compliance to both prudential and AML/CFT obligations.”
“Above all it will help for transparency, accountability and price discovery, reduce speculative activities in the foreign exchange market,” he added.