Market News

…BDCs yet to purchase dollars from banks

The naira on Monday weakened across segments of the foreign exchange (FX) market as weekly inflows declined, while Bureau De Change (BDC) operators remained unable to purchase dollars from banks two weeks after the Central Bank of Nigeria (CBN) reopened the Nigerian Foreign Exchange Market (NFEM) window to them.

Data published by the Central Bank showed the naira depreciated steadily over the last four trading sessions to close at N1,349.24 per dollar on Monday, marking a loss of N11.13 or 0.82 percent compared to N1,338.11 recorded on Wednesday last week. On a daily basis, the currency weakened by N2.92 or 0.2 percent from N1,346.32 quoted on Friday at the NFEM.

In the parallel market, also known as the black market, the naira fell by N18 as the dollar traded at N1,358 on Monday, a depreciation of 1.34 percent from N1,340 quoted on Friday. The currency’s gradual slide came amid a sharp drop in weekly FX inflows by $741.8 million, although the country’s external reserves remained firm.

Nigeria’s external reserves, which provide the CBN with firepower to support the naira, rose to $48.77 billion as of February 19, 2026, according to apex bank data.

Total FX inflows for last week settled at $648.2 million, driven largely by foreign participation. This represents a decline of $741.8 million compared to $1.39 billion recorded in the prior week. Foreign Portfolio Investors (FPIs) accounted for the largest share, contributing $364.8 million or 56.3 percent of total inflows. Exporters followed with $168.8 million or 26.0 percent, while non-bank corporates contributed $93.7 million or 14.5 percent. Individuals accounted for $10.0 million or 1.5 percent, and other sources, including foreign direct investment and other corporates, contributed $10.8 million or 1.7 percent.

Notably, there were no FX inflows from the CBN during the week, according to a report by the research department of Coronation Merchant Bank.

Efforts to obtain comments from BDC operators on the CBN’s directive were unsuccessful, as Aminu Gwadabe, president of the Association of Bureau De Change Operators of Nigeria, and other operators did not respond to calls or messages as of press time.

As of Monday, checks indicated that BDC operators had yet to commence dollar purchases from commercial banks, two weeks after the reopening of the market to them.

In a circular signed by Musa Narkoji, director of the Trade and Exchange Department, the CBN authorised licensed BDCs to purchase foreign exchange from the NFEM through authorised dealer banks at prevailing market rates, a move aimed at boosting liquidity in the retail segment and meeting legitimate demand.

Under the guidelines, authorised dealer banks are required to complete all Know-Your-Customer procedures and due diligence checks for BDC clients in line with regulatory standards and internal risk frameworks. Upon satisfactory documentation, banks may sell foreign exchange in accordance with existing BDC guidelines, subject to a maximum of $150,000 per week per BDC.