CBN Limits Dollar From Bureau De Change To $10,000 For School Fees, $5000 For Medical Bills

The Central Bank of Nigeria (CBN) has rolled out revised regulatory guidelines for Bureau De Change (BDC) operations in the country. The circular, dated February 23, 2024, titled “Revised Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria – Exposure Draft,” was signed by Mr. Haruna B. Mustafa, the Director of the Financial Policy and Regulation Department.

Under the new guidelines, the CBN has set limits on foreign exchange sales by BDC operators. Individuals seeking personal or business travel allowances (PTA/BTA) can purchase foreign currency up to $4,000 and $5,000, respectively, every six months. The transactions must be accompanied by the customer’s bank verification number (BVN) or tax identification number (TIN), along with various supporting documents.

For medical bills, customers can obtain up to $5,000 annually, which will be transferred from the BDC’s domiciliary account to the hospital directly. School fees, limited to $10,000 per year, follow a similar process, with funds transferred directly to the educational institution.

Beneficiaries are allowed to receive 25% of the foreign currency in cash, with the remaining 75% electronically transferred to their Nigerian domiciliary account or prepaid travel card.

The CBN emphasized that these measures aim to enhance the regulatory framework for BDC operations, forming part of ongoing reforms in the Nigerian foreign exchange market. Stakeholders and the public are invited to provide comments and inputs on the draft guidelines by March 4, 2024.

The guidelines also outline permissible and non-permissible activities for BDCs. Among the restrictions, BDCs are prohibited from engaging in street trading, maintaining public accounts, taking deposits, granting loans, and various other activities.

Furthermore, the CBN listed categories of individuals and organizations ineligible to participate in BDC ownership, emphasizing the need for prior authorization to conduct BDC business in Nigeria.