The Central Bank of Nigeria (CBN) has rolled out a revised Foreign Exchange Manual in a renewed effort to bring stability, transparency, and predictability to the country’s foreign exchange market, which has long been marked by volatility and policy uncertainty.
The updated manual, which became effective on June 1, 2026, represents the fourth edition of the framework and replaces the 2018 version. It comes after years of significant economic shocks, including the COVID-19 pandemic, oil price fluctuations, and multiple exchange rate reforms that exposed gaps in the existing regulatory structure.
For years, Nigeria’s FX market has been shaped by uncertainty, with importers facing delays and documentation hurdles, exporters questioning repatriation processes, and investors expressing concern over inconsistent policies. The banking sector has also had to navigate shifting directives and market stress.
Push for Transparency and Market Discipline
At the launch of the manual, CBN Governor Olayemi Cardoso said the reform was aimed at strengthening transparency and restoring confidence in the market.
“Foreign exchange is more than a financial instrument; it is a critical enabler in any open economy,” Cardoso said, adding that the updated framework was necessary to reflect current economic realities and improve market efficiency.
CBN Deputy Governor, Economic Policy Directorate, Dr Muhammad Abdullahi, explained that the review was part of a broader reform agenda initiated under the current administration to improve liquidity, transparency, and trust in the FX market.
He noted that “a modern FX market cannot thrive in an environment characterised by opacity, fragmentation, delays, uncertainty, or excessive administrative bottlenecks,” stressing the need for consistent rules and stronger enforcement.
Key Changes in the Manual
The revised manual introduces several operational adjustments aimed at reducing bottlenecks and improving efficiency in FX transactions.
One of the major changes is the harmonisation of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) processes, with 75 per cent of transactions now to be processed electronically, while 25 per cent may still be disbursed in cash.
Import advance payments have also been increased from 15 per cent to 30 per cent, giving businesses more flexibility in dealing with foreign suppliers.
In addition, processing of Form NXP for export documentation will now be free, while new provisions have been introduced for service exports, technology-related remittances, and regional payment systems.
The manual also introduces Non-Resident Investment Accounts and Non-Resident Ordinary Accounts, and allows full repatriation of export proceeds for foreign companies in the extractive sector.
A notable relief for individuals is the removal of the mandatory Form A requirement for certain remittances through domiciliary accounts, although banks will still verify transaction legitimacy.
The framework also permits tuition payments abroad of up to $25,000 per semester and allows controlled transfers between different types of domiciliary accounts.
Banks and Market Operators Back Reform
Commercial banks have welcomed the new guidelines, describing them as a step toward restoring discipline and clarity in the FX market.
Group Managing Director of United Bank for Africa, Mr Oliver Alawuba, said the reforms reflect a clearer policy direction anchored on transparency and credible price discovery.
He noted that market behaviour has already begun to shift, with banks now seeing increased inflows through official channels compared to previous years.
Group Managing Director of Access Holdings, Mr Roosevelt Ogbonna, also said the revised manual would help eliminate ambiguity and strengthen discipline among market participants.
According to him, earlier FX reforms struggled because they lacked strong foundational rules, but the current approach is building “from the ground up” with clearer codes of conduct.
Beyond Regulation: The Bigger Challenge
While the revised manual introduces clearer rules and tighter compliance structures, analysts note that regulation alone cannot stabilise the FX market.
Sustainable stability will depend on broader economic fundamentals, including export earnings, oil production levels, investor confidence, and fiscal discipline.
The Federal Government, through representatives at the launch, described the manual as part of wider macroeconomic reforms aimed at promoting stability and sustainable growth.
CBN officials also emphasised that the success of the framework will depend heavily on consistent implementation and cooperation across the financial system.
Outlook
Nigeria’s FX market has undergone several reform cycles over the years, often followed by periods of instability triggered by external shocks and policy shifts.
The revised Foreign Exchange Manual represents another attempt to build a more predictable and transparent system. However, its long-term success will depend not just on the rules themselves, but on how effectively they are enforced and sustained over time.
