CBN Pumps $150,000 Weekly into BDCs to Kill Black Market Premium and Stabilize the Naira

The Central Bank of Nigeria (CBN) has taken its boldest step yet to reclaim control of the retail foreign exchange market, authorizing licensed Bureau De Change (BDC) operators to purchase up to $150,000 every week. This aggressive liquidity injection, announced late Tuesday, is a direct strike against currency speculators who have long thrived on the “gap” between official and street rates.

Under the new directive signed by Dr. Musa Nakorji, the CBN’s Director of Trade and Exchange, BDCs can now access the greenback through authorized dealer banks at prevailing market rates. The goal is simple: ensure that every Nigerian needing dollars for school fees, medical bills, or travel can find them easily without resorting to the volatility of the “black market.”

However, this is not a “free for all.” The Olayemi Cardoso-led CBN has attached iron-clad conditions to the new allocation. To prevent the hoarding that has plagued past interventions, any BDC that fails to sell its $150,000 within 24 hours must return the unused balance to the market. Furthermore, the days of “suitcase cash” are over; at least 75% of every sale to a customer must be settled electronically, with physical cash payouts strictly limited to 25%.

“We are moving toward a transparent, digital-first FX market,” a senior CBN official noted. “By allowing BDCs to sell at only a 1% margin above their buying rate and enforcing strict electronic returns, we are making it impossible for round-tripping to remain profitable.”

The impact was felt almost immediately across major trading hubs in Lagos and Abuja on Wednesday. Traders reported a “softening” of demand as the Naira maintained its resilience, trading within a stable band of ₦1,350 to ₦1,440 across both windows.

As the CBN ramps up its weekly sales, the message to those still hoarding dollars is clear: the “State of Harmony” in the FX market is being enforced with a $150,000-a-week hammer, and the era of massive arbitrage is officially coming to an end.