CBN unveils new forex manual to boost market liquidity

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The Central Bank of Nigeria on Friday launched the fourth edition of its Foreign Exchange Manual, with the revised framework scheduled 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.

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Speaking at the launch of the revised manual in Abuja, the Governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, said the initiative reflected the apex bank’s commitment to strengthening macroeconomic stability and modernising Nigeria’s foreign exchange administration.

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

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He said the revised manual became necessary following evolving global economic conditions, domestic structural adjustments, and ongoing reforms in Nigeria’s foreign exchange market.

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“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 said.

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Cardoso added, “This Fourth Edition is the result of extensive consultation and rigorous technical review, aligned with international best practices. It reflects our commitment to modernising foreign exchange administration to enhance clarity, consistency, and market efficiency. The Manual will take effect on June 1, 2026.”

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The CBN governor said the successful implementation of the revised framework would depend on the cooperation of authorised dealer banks, corporates, regulators, ministries, departments and agencies, exporters, importers and other stakeholders.

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“Your adherence is essential, your cooperation indispensable, and your partnership remains central to the stability and credibility of the Nigerian foreign exchange market,” he stated.

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

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“To support seamless adoption, the Manual will be readily available at no cost to Authorised Dealers, reflecting our priority on compliance over cost recovery,” Cardoso said.

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In his address, the Deputy Governor, Economic Policy Directorate of the Central Bank of Nigeria, Dr Muhammad Abdullahi, said the revised manual formed part of broader reforms initiated under Cardoso’s leadership to restore confidence, improve transparency, deepen liquidity and strengthen market efficiency.

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He said the review was undertaken to align Nigeria’s foreign exchange framework with current market realities and international best practices.

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“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.

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According to him, the revised manual was developed after extensive consultations with authorised dealers, exporters, corporates, regulators, development partners and other stakeholders across the public and private sectors.

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He said the review process adopted an “Ease of Doing Business” approach aimed at reducing transaction bottlenecks, operational inefficiencies and market ambiguities.

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“Our goal is to reduce transaction frictions, improve processing timelines, deepen market confidence, encourage formal market participation, and create a more seamless and efficient experience for legitimate users of Nigeria’s foreign exchange market,” he said.

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Abdullahi disclosed that the revised manual introduced several major changes, including harmonising the disbursement structures for the Personal Travel Allowance and Business Travel Allowance with the revised Bureau De Change guidelines.

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Under the revised structure, 75 per cent of PTA and BTA would be disbursed electronically, while 25 per cent may be paid in cash.

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Other changes include the upward review of allowable advance payment for imports from 15 per cent to 30 per cent, free processing of Form NXP and the introduction of provisions for service exports, PAPSS transactions, remittances by technology companies, and non-resident investment accounts.

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The manual also introduced provisions allowing payments for services, fees and charges in foreign currency where receipts are generated in foreign currency, as well as tuition fee payments for undergraduate and postgraduate studies, subject to a maximum of $25,000 per semester.

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The deputy governor further stated that the revised framework provided for unfettered access for holders of export proceeds and ordinary domiciliary accounts, 100 per cent repatriation of export proceeds for foreign companies operating in the extractive sector, and the removal of the mandatory Form A requirement for remittances using ordinary domiciliary accounts.

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“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 added.

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Representing the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, the Permanent Secretary, Special Duties, Mr Mohammed Danjuma, described the revised manual as a strategic tool to improve transparency, operational efficiency, and investor confidence in Nigeria’s foreign exchange market.

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“This initiative reflects our unwavering commitment to reforms that promote macroeconomic stability, accountability, and sustainable growth,” Danjuma said.

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He added that the revised manual would strengthen regulatory compliance, reduce ambiguities in market practices and support ease of doing business.

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“I’m confident that this manual will significantly improve market discipline, support ease of doing business, and align our practices with international standards and global best practices,” he said.

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In his goodwill message, the Chairman of the Body of Banks’ Chief Executive Officers and Group Managing Director of United Bank for Africa, Mr Oliver Alawuba, commended the apex bank for the reforms introduced in the foreign exchange market.

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According to him, the revised manual reinforced the CBN’s policy direction on transparency, ethical conduct, improved oversight and credible price discovery in the foreign exchange market.

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“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.

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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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