CBN FX market reforms introduce new foreign exchange rules aimed at boosting transparency, liquidity and investor confidence

The Central Bank of Nigeria on Friday launched the fourth edition of its Foreign Exchange Manual, unveiling a revised framework designed to strengthen transparency, liquidity and confidence in Nigeria’s foreign exchange market.

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The new framework, scheduled to take effect from June 1, 2026, forms part of broader reforms introduced by the apex bank to modernise foreign exchange administration and stabilise the economy.

Speaking at the launch in Abuja, Governor of the Central Bank of Nigeria, Olayemi Cardoso, said the initiative reflected the bank’s commitment to reinforcing macroeconomic stability and improving efficiency within the foreign exchange ecosystem.

“This unveiling reflects our collective commitment to strengthening Nigeria’s macroeconomic foundations, enhancing transparency, and reinforcing confidence in the foreign exchange market,” Cardoso said.

The CBN FX market reforms were introduced against the backdrop of evolving global economic conditions, domestic structural adjustments and efforts to diversify Nigeria’s foreign exchange earnings while managing inflationary pressures.

According to Cardoso, the revised manual followed extensive consultations and technical reviews aligned with international best practices.

“This Fourth Edition is the result of extensive consultation and rigorous technical review, aligned with international best practices,” he said.

“It reflects our commitment to modernising foreign exchange administration to enhance clarity, consistency, and market efficiency.”

Cardoso stressed that successful implementation of the revised framework would depend heavily on collaboration among authorised dealer banks, regulators, exporters, importers, ministries and other stakeholders.

He also disclosed that the apex bank would strengthen monitoring mechanisms to ensure accountability, fairness and compliance across the foreign exchange market.

Deputy Governor of Economic Policy at the CBN, Muhammad Abdullahi, described the revised manual as part of a deliberate institutional reform agenda aimed at restoring market confidence and deepening liquidity.

According to Abdullahi, the review adopted an “Ease of Doing Business” approach focused on reducing operational bottlenecks and transaction delays within the foreign exchange system.

Among the major changes introduced under the CBN FX market reforms is the harmonisation of Personal Travel Allowance and Business Travel Allowance disbursement structures with revised Bureau De Change guidelines.

Under the new arrangement, 75 per cent of PTA and BTA payments will be made electronically, while 25 per cent may be paid in cash.

The revised manual also increased allowable advance payments for imports from 15 per cent to 30 per cent and introduced free processing of Form NXP.

Additional provisions were introduced for service exports, PAPSS transactions, technology company remittances and non-resident investment accounts.

The framework further permits payments for services, fees and charges in foreign currency where receipts are earned in foreign currency.

Tuition fee payments for undergraduate and postgraduate studies abroad were also included, subject to a maximum limit of $25,000 per semester.

Abdullahi added that the reforms now allow unfettered access for holders of export proceeds and ordinary domiciliary accounts, while also removing the mandatory Form A requirement for remittances conducted through ordinary domiciliary accounts.

Representing the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, Permanent Secretary for Special Duties, Mohammed Danjuma, described the revised manual as a strategic instrument for improving investor confidence and operational efficiency.

Chairman of the Body of Banks’ Chief Executive Officers and Group Managing Director of United Bank for Africa, Oliver Alawuba, also commended the reforms, saying they had strengthened confidence in Nigeria’s economy and improved transparency in the foreign exchange market.

“The table has been turned. There’s so much greater confidence in the Nigerian economy, thanks to the reform that has been conducted by the Central Bank of Nigeria,” Alawuba said.