Nigeria's central bank wants every retail dollar traced with digital tracker

In a cramped, sun-drenched Bureau De Change (BDC) office in Lagos, 32-year-old Chinedu Eze, a licenced operator, has been watching the Central Bank of Nigeria (CBN) tighten its grip on the retail foreign exchange market. Eze, like many of his peers, has seen the industry transform in recent years, from the street trading that once dominated the landscape to the sanitised supply chain that now regulates their transactions. But the latest move, a digital tracker that requires every retail dollar to be recorded from the moment it's requested to the moment it's sold, marks a significant shift in the regulator's approach to oversight. "We've had to adapt to new rules and regulations since the CBN started issuing licences to BDCs in 2025," Eze notes, his eyes scanning the rows of computer screens and cash counters that have become the backbone of his business.

Nigeria's retail foreign exchange market has undergone a significant transformation since the CBN issued its 2024 Regulatory and Supervisory Guidelines. The guidelines aimed to shrink the space for street trading, sanitise the supply chain, and restore confidence across the market. In December 2025, the CBN issued the first batch of final licences to 82 BDC operators, paving the way for the industry's growth. However, the regulator has now taken a digital turn, introducing the FX BDC Purchase Tracker (FXBT) to monitor every foreign exchange purchase made by BDCs.

The FXBT portal, launched on July 15, will require BDCs to submit real-time or same-day data on dollar purchases, enabling systemic compliance and oversight. This move reflects the CBN's broader push to replace fragmented reporting with transaction-level oversight in one of Nigeria's most opaque financial markets. By digitising how BDCs interact with banks, the CBN is building the infrastructure to monitor liquidity, enforce compliance, and detect abuse in real time. The portal gives the CBN visibility into every request, approval, and settlement, making it easier to identify BDCs attempting to exceed their weekly purchase limits of $150,000 or divert foreign exchange outside approved channels.

Before selling foreign exchange to any BDC, authorised dealer banks must conduct full Know-Your-Customer (KYC) and customer due diligence checks, verify beneficial ownership information, and retain incorporation documents. This increased scrutiny will not only prevent illicit activities but also strengthen the overall integrity of the market. As the CBN's guidance highlights, banks will now be the first line of enforcement, ensuring that every transaction is legitimate and compliant with regulations.

The introduction of the FXBT portal marks a significant milestone in the CBN's efforts to liberalise the market and improve price discovery. By digitising the retail foreign exchange market, the regulator is creating a more transparent and efficient system that will benefit both BDCs and end-users. Chinedu Eze, the BDC operator, remains optimistic about the future, noting that the new framework will help to reduce the risks associated with illicit activities and promote a more level playing field. "We're excited about the opportunities that this new framework presents," he says, his eyes shining with anticipation.

As I reflect on this story, I'm struck by the complex interplay between regulation and innovation. The CBN's decision to introduce a digital tracker for every retail dollar is evidence of the power of technology in transforming industries and improving lives. While some may view this move as a restriction on BDCs, I believe it's a necessary step towards creating a more transparent and efficient market., how will this new framework impact the lives of Nigerians who rely on BDCs for their foreign exchange needs?