By Abigail David
The Central Bank of Nigeria has unveiled the fourth edition of its Foreign Exchange Manual, introducing new rules aimed at improving transparency, strengthening compliance and enhancing efficiency in Nigeria’s foreign exchange market.
The revised manual, which took effect on June 1, marks the first comprehensive update since 2018 and forms part of the apex bank’s broader reform agenda to restore confidence and deepen liquidity in the foreign exchange market.
Speaking at the launch, CBN Governor, Olayemi Cardoso, said the review became necessary due to significant changes in global and domestic economic conditions over the past decade.
According to him, foreign exchange remains a critical driver of price stability, trade, capital flows and investor confidence, making a modern regulatory framework essential for market efficiency.
Cardoso noted that ongoing reforms in the foreign exchange market required a more coherent and forward-looking framework capable of addressing emerging realities.
The Deputy Governor in charge of Economic Policy, Muhammad Abdullahi, described the manual as part of a wider strategy initiated by the current leadership of the apex bank to improve transparency, strengthen market discipline and encourage participation through official channels.
Among the key changes introduced are the harmonisation of Personal Travel Allowance and Business Travel Allowance transactions with revised Bureau de Change guidelines, with 75 per cent of such transactions now to be processed electronically and only 25 per cent allowed in cash.
The manual also increases allowable advance payments for imports from 15 per cent to 30 per cent, a move expected to provide businesses with greater flexibility in settling transactions with foreign suppliers.
To encourage exports, the CBN has removed charges associated with processing Form NXP and introduced new provisions covering service exports, technology-sector remittances and transactions under the Pan-African Payment and Settlement System.
Other reforms include the introduction of Non-Resident Investment Accounts and Non-Resident Ordinary Accounts, as well as approval for foreign companies in the extractive sector to repatriate 100 per cent of export proceeds.
The apex bank also removed the mandatory Form A requirement for remittances through ordinary domiciliary accounts, although authorised dealer banks will continue to verify the legitimacy of transactions.
In addition, the revised guidelines permit tuition fee payments of up to $25,000 per semester for Nigerian students studying abroad and allow transfers between export proceeds domiciliary accounts and ordinary domiciliary accounts under specified conditions.
Commercial banks welcomed the reforms, describing them as a continuation of efforts to build a transparent and rules-based foreign exchange market.
Group Managing Director of United Bank for Africa, Oliver Alawuba, said the revised manual would reinforce transparency, ethical conduct, stronger documentation and improved oversight within the market.
Similarly, Group Managing Director of Access Holdings Plc, Roosevelt Ogbonna, said the framework would reduce ambiguity and promote market discipline among participants.
Representing the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, Permanent Secretary for Special Duties, Mohammed Danjuma, described the manual as an important component of Nigeria’s economic reform agenda aimed at promoting macroeconomic stability and sustainable growth.
Analysts say the success of the revised framework will depend largely on consistent implementation, effective enforcement and sustained policy stability across the financial system.
