The Central Bank of Nigeria has introduced a new policy limiting the amount of foreign exchange cash sales by bureau de change operators to $5,000 per transaction.
This measure, outlined in the Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024/2025, aims to regulate cash sales and ensure stability in the foreign exchange market.
Under the new guidelines, bureau de change operators are restricted to selling a maximum of $5,000 in foreign currency per approved transaction.
This cap is part of the CBN’s broader strategy to manage foreign exchange reserves and prevent misuse of foreign currency.
Additionally, the CBN allows authorized dealers to pool funds from various sources, provided the origins are properly identified and reported. This provision aims to enhance transparency in foreign exchange transactions.
Travellers entering or leaving Nigeria with amounts exceeding N100, 000 or $10,000 must declare these funds at the border.
This regulation is intended to ensure transparency and aid in statistical data collection.
The policy also limits advance payments for imports to 15% of the free-on-board value of transactions, in line with the Public Procurement Act of 2007.
Furthermore, business and personal travel allowances are capped at $5,000 and $4,000 per quarter, respectively.
The CBN has mandated all existing bureau de change operators to reapply for new licenses in their preferred category, a move that has been met with resistance from operators who argue it conflicts with global practices.
The President of the Association of Bureau de Change Operators of Nigeria, Aminu Gwadabe, acknowledged the new transaction limit but emphasized that members are expected to comply with the guideline.
The CBN reserves the right to review these thresholds as necessary to adapt to changing market conditions.
