The Central Bank of Nigeria (CBN) has introduced a ₦100 million penalty for banks and authorised dealers that process foreign exchange transactions without adequate documentation.
Naijaonpoint understands that the sanction is contained in the offences and sanctions section of the fourth edition of the CBN Foreign Exchange Manual, released by the apex bank’s Trade and Exchange Department in May 2026.
According to the manual, authorised dealers involved in such transactions will pay ₦100m, in addition to ₦10m for each affected transaction.
The manual stated, “Authorised dealers shall pay ₦100m in addition to ₦10m per transaction” for consummating foreign exchange transactions with inadequate documentation.
The revised manual, the first major update since 2017, is expected to serve as a regulatory guide for banks, authorised buyers, exporters, investors and members of the public involved in foreign exchange transactions.
The CBN said the new framework was designed to improve transparency in foreign exchange inflows and outflows, strengthen documentation and reporting standards, and support enforcement across the foreign exchange market.
It added that the reforms would ensure that foreign exchange was channelled to productive uses in line with national economic priorities.
The apex bank said the manual would also help reduce abuses in the Nigerian Foreign Exchange Market and improve compliance by authorised dealers and other participants.
Apart from the ₦100m sanction, the manual introduced several other penalties for banks and other operators found to have violated foreign exchange rules.
Under the revised rules, banks that exceed their approved Net Open Position limits will face graduated sanctions.
A first offence will attract a warning letter, while a second breach will lead to a 10-working-day suspension from the foreign exchange market.
A third violation will attract a 90-day suspension from the market.
The CBN also imposed stricter reporting obligations on authorised dealers, requiring them to submit daily returns on foreign exchange transactions by 10 a.m. for the preceding day.
Monthly returns must also be submitted within five working days after the end of each month.
Failure to comply with the reporting timeline will attract sanctions.
Under the new rules, late rendition of returns will attract a fine of ₦500,000, while non-rendition will attract a minimum penalty of ₦5m and an additional ₦500,000 for every day the violation continues.
The apex bank also warned banks against reallocating foreign exchange funds without regulatory approval.
It said such breaches could lead to monetary fines, suspension of authorised dealership licences for at least six months, or outright licence revocation, depending on the severity of the offence.
The CBN said the measures were necessary to protect the integrity of the foreign exchange market and ensure that operators complied with approved rules.
The revised manual also introduced tighter rules for import-related transactions.
Importers are now required to submit Exchange Control Documents within 90 days of negotiating shipping documents with overseas correspondent banks.
Those who fail to comply will be restricted from conducting valid and invalid foreign exchange transactions, including the processing of Form M applications.
Under the new regime, first-time offenders will face a 90-day restriction, while a second violation will attract a 180-day restriction.
A third offence will lead to a 360-day restriction, while a fourth violation will result in a complete ban from the foreign exchange market.
Banks that fail to report such defaults will also face sanctions, including a warning and a ₦10m penalty for each affected transaction.
