Following months of unprecedented uncertainties, the Nigerian naira has begun to appreciate against the dollar, prompting the Central Bank of Nigeria (CBN) to announce the sale of $10,000 to each eligible Bureau de Change (BDC) operator in the country at a rate of N1,251/$1 on Monday.
In a circular addressed to the President of the Association of Bureau De Change Operators of Nigeria, the CBN specified that BDCs must sell to eligible end users at a spread not exceeding 1.5% above the purchase price, as outlined by the bank’s Director of Trade and Exchange Department, Hassan Mahmud.
The CBN issued a warning that any BDC found in violation of the stipulated terms would face appropriate sanctions, including potential suspension from further participation in the sales.
Nigeria continues to grapple with challenges such as rising inflation, food inflation, the forex crisis, economic hardship, and high living costs due to the removal of petrol subsidies, leading to protests in various regions as the naira’s purchasing power and the disposable income of ordinary Nigerians diminish in the wake of the forex crisis and inflation.
Over the past nine months, the Nigerian naira has experienced a decline since the collapse of the foreign exchange window during the President Bola Tinubu administration, resulting in a significant increase in commodity prices as the naira hit an all-time low, dropping from approximately N700/$1 in May to around N2,000/$1 last month before showing signs of gradual appreciation in March.
Authorities have shifted their attention to cryptocurrency platforms like Binance, accusing them of engaging in speculation and taking measures to restrict their operations through telecommunication companies.
To stabilize the fluctuating value of the naira, the CBN revoked the licenses of 4,173 BDCs on March 1, 2024, due to compliance issues, and had previously raised the minimum capital requirements for BDC operators in Nigeria to N2 billion for Tier 1 license holders in February.
