Central Bank Unveils New Foreign Exchange Rules, Gives Green Light to $50,000 Export

The Central Bank of Nigeria has introduced new Foreign Exchange Guidelines, which permit individuals to export up to $50,000 in cash, provided the amount is declared at the point of exit.

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According to the guidelines, released the previous day, individuals can export or import cash of up to $10,000 without declaration, in line with the bank's earlier provision.

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The guidelines specify that foreign currency exports are allowed under certain conditions, including amounts not exceeding $10,000, or amounts between $10,000 and $50,000 if declared at the point of exit.

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For exports exceeding $50,000, evidence of the transaction or procurement through an Authorised Dealer is required, according to the guidelines.

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Foreign currency imports are also permissible, with individuals allowed to bring in up to $10,000 without declaration, while amounts above $10,000 must be declared at the point of entry.

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Authorised Dealer Banks are permitted to import foreign currency to meet local cash needs, subject to prior approval from the Central Bank of Nigeria.

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Inbound foreign exchange transfers to Nigeria must be disbursed to beneficiaries' bank accounts in Naira or another currency determined by the Central Bank of Nigeria from time to time.

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The guidelines set a maximum allowable cash withdrawal for inbound money transfers at the Naira equivalent of $200, with excess amounts to be paid through an account.

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All International Money Transfer Operators must open Naira settlement accounts and ensure transactions are routed through designated settlement accounts maintained with Authorised Dealer Banks in Nigeria.

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Authorised Dealers and Buyers are allowed to purchase foreign currency from individuals visiting Nigeria, who can then exchange unutilized Nigerian currency for foreign currency at departure, provided there is evidence of initial conversion.

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The exchange of unutilized Nigerian currency is limited to the amount initially converted, if done through an Authorised Dealer, while an Authorised Buyer can exchange the unutilized balance of the converted amount.