CBN bans street trading of the Naira

The Central Bank of Nigeria has banned street trading of the Naira, or, put in other words, exchanging of the Naira and bureau de change services and operations for other currencies on the streets. What this means is that it is now illegal for anyone to buy or sell the Naira for other currencies along the streets. The prohibition comes under the non permissible activities for BDCs in Nigeria

The central bank introduced the new regulations that include higher minimum capital levels for bureau de change operators in a circular addressed to Bureau De Change operators titled: Regulatory and Supervisory guidelines for Bureau De Change Operations in Nigeria. The effective take-off date of the new guidelines was was however not stated in the document. So it may be assumed that it is with immediate effect.

These measures are part of broader reforms aimed at addressing the currency market challenges in Nigeria, which have been exacerbated by previous oil price collapses and the implementation of capital controls in 2015. In late February 2024, the CBN had revoked the operating licenses of 4,173 bureau De Changer operators in the country

Currently, individuals or agents of bureau de change officials sell hard currency on the streets of Lagos, Abuja and other cities to reduce operational costs. However, under the new guidelines, Tier 1 bureau de change can operate in any State of the federation plus the FCT will need to have a minimum capital of N2 billion to operate nationally, compared to the current requirement of N35 million.

Tier 2 BDCs can only operate within a State will need a minimum capital of N500 million . Additionally, individuals will be limited to withdrawing no more than $500 in cash at a time, with larger amounts requiring settlement through the bank.