CBN unveils new forex manual to boost market liquidity
The Central Bank of Nigeria on Friday launched the fourth edition of its Foreign Exchange Manual, with the revised framework set to take effect from June 1, 2026, as part of ongoing reforms aimed at improving transparency, liquidity, and confidence in Nigeria’s foreign exchange market. Speaking at the launch in Abuja, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, said the initiative reflected the apex bank’s commitment to strengthening macroeconomic stability and modernising foreign exchange administration. “This unveiling reflects our collective commitment to strengthening Nigeria’s macroeconomic foundations, enhancing transparency, and reinforcing confidence in the foreign exchange market,” Cardoso said. He explained that the revised manual became necessary due to changing global economic realities, domestic structural adjustments, and ongoing reforms in Nigeria’s foreign exchange market. “Over the past decade, the global economy has become increasingly complex and uncertain, while the domestic economy has undergone structural adjustments, including efforts to diversify foreign exchange earnings and manage inflationary pressures,” he stated. Cardoso said 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.” He added that the successful implementation of the revised framework would depend on cooperation among authorised dealer banks, corporates, regulators, ministries, exporters, importers, and other stakeholders. “Your adherence is essential, your cooperation indispensable, and your partnership remains central to the stability and credibility of the Nigerian foreign exchange market,” Cardoso said. The CBN governor also disclosed that the apex bank would strengthen monitoring mechanisms to ensure fairness, accountability, and compliance in the market. “To support seamless adoption, the Manual will be readily available at no cost to Authorised Dealers, reflecting our priority on compliance over cost recovery,” he added. Also speaking, the Deputy Governor, Economic Policy Directorate of the CBN, Muhammad Abdullahi, said the revised manual formed part of broader reforms aimed at restoring confidence, improving transparency, deepening liquidity, and strengthening market efficiency. “The revised Manual we are unveiling today is therefore not a standalone exercise, but part of a broader and deliberate institutional reform effort designed to strengthen the integrity, credibility, and effectiveness of Nigeria’s foreign exchange ecosystem,” Abdullahi said. According to him, the revised framework introduced major changes, including harmonising the disbursement structures for Personal Travel Allowance and Business Travel Allowance with revised Bureau De Change guidelines. Under the new structure, 75 per cent of PTA and BTA will be disbursed electronically, while 25 per cent may be paid in cash. He also disclosed that the allowable advance payment for imports had been increased from 15 per cent to 30 per cent. Other reforms include free processing of Form NXP and new provisions covering service exports, PAPSS transactions, remittances by technology companies, and non-resident investment accounts. The revised manual also allows payments for services, fees, and charges in foreign currency where receipts are generated in foreign currency, while tuition fee payments for undergraduate and postgraduate studies are now permitted up to a maximum of $25,000 per semester. Abdullahi added that the framework provides unrestricted access for holders of export proceeds and ordinary domiciliary accounts, full repatriation of export proceeds for foreign companies in the extractive sector, and the removal of the mandatory Form A requirement for remittances using ordinary domiciliary accounts. “These reforms collectively seek to improve operational efficiency, deepen market confidence, reduce administrative bottlenecks, support legitimate business activities, strengthen compliance standards, and further modernise Nigeria’s foreign exchange framework,” he said. Representing the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the Permanent Secretary, Special Duties, Mohammed Danjuma, described the revised manual as a strategic tool to improve transparency, operational efficiency, and investor confidence in the foreign exchange market. “This initiative reflects our unwavering commitment to reforms that promote macroeconomic stability, accountability, and sustainable growth,” Danjuma said. He expressed confidence that the manual would strengthen market discipline and support ease of doing business. In his goodwill message, Chairman of the Body of Banks’ Chief Executive Officers and Group Managing Director of United Bank for Africa, Oliver Alawuba, commended the apex bank for the reforms introduced in the foreign exchange market. “The tables have 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. He assured the apex bank that commercial banks would support the implementation of the revised manual and ensure compliance with its provisions.
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