Nigeria central bank mandates real-time tracking of retail FX

The Central Bank of Nigeria (CBN) has ordered all Bureau De Change (BDC) operators and authorised dealer banks to process retail foreign exchange purchases through a new centralised electronic portal. The FX BDC Purchase Tracker (FXBT), detailed in a framework issued on July 15, gives the apex bank real-time visibility into dollar flows from initial request to final utilisation. This replaces previously fragmented reporting systems with a unified, transaction-level ledger.

Authorised dealer banks now act as the primary enforcement layer for the retail market. Before selling any foreign exchange to a BDC, banks must conduct strict Know-Your-Customer checks, verify beneficial ownership, review incorporation documents and perform enhanced due diligence on high-risk operators. Banks are explicitly barred from supplying dollars to BDCs that fail these checks, though they are simultaneously prohibited from forcing exclusive dealing arrangements on compliant operators.

The digital system is designed to enforce tight operational boundaries and curb speculative behaviour. Operators are capped at weekly foreign exchange purchases of $150,000 and cannot obtain multiple allocations from different banks. BDCs must also return unused balances to the Nigerian Foreign Exchange Market (NFEM) within 24 hours after their utilisation period expires.

Transaction workflows under the new framework are strictly timed and entirely digitised. BDCs must submit purchase requests electronically, and banks are required to acknowledge them within two business hours, issuing immediate electronic notices of approval or rejection. Furthermore, the CBN has effectively banned third-party settlements, mandating that all transactions between banks, BDCs and end-customers flow exclusively through accounts held at licensed financial institutions.

This technological oversight builds on a February policy that allowed licensed BDCs to access dollars directly from authorised banks via the NFEM. That earlier reform was designed to improve liquidity and reduce the economy's reliance on informal, parallel foreign exchange channels. “The Guidance announces the implementation of the electronic portal to facilitate the interaction between BDCs and the Nigerian Foreign Exchange Market (NFEM) and outlines, among others,” the CBN stated.

For financial institutions and investors operating in Nigeria, the FXBT marks a significant escalation in regulatory scrutiny. The CBN is leveraging technology to identify market abuses, prevent the hoarding of hard currency and ensure official supply reaches genuine retail users. While the framework aims to impose market discipline and transparency, it places a heavy compliance and monitoring burden on the commercial banks serving as the market's gatekeepers.