The Central Bank of Nigeria (CBN) has unveiled a major revision of its foreign exchange regulatory framework. The new rules introduce stricter compliance measures and heavy penalties for violations.
Under the updated framework, banks that process foreign exchange (FX) transactions without adequate documentation will face severe sanctions. The CBN said authorised dealer banks found guilty of such breaches will pay a N100 million fine. In addition, they will pay N10 million for every affected transaction.
The new provisions are contained in the Fourth Edition of the Foreign Exchange Manual recently released by the apex bank. The document represents the first major review of the foreign exchange guide in nearly a decade.
According to the CBN, the revised manual is designed to improve transparency and accountability in Nigeria’s foreign exchange market. It also seeks to strengthen market discipline and enhance investor confidence.
The apex bank stated that the updated framework establishes clear documentation and reporting standards for all foreign exchange transactions. It also introduces stronger enforcement mechanisms to ensure compliance by market participants.
Furthermore, the CBN said the manual would help promote transparency in foreign exchange inflows and outflows across the economy. The regulator noted that the measures are intended to ensure that scarce foreign exchange resources are directed towards productive economic activities.
Industry observers believe the tougher sanctions could encourage greater compliance among banks and reduce irregularities in the foreign exchange market. The move is also expected to support ongoing efforts to improve efficiency and stability in Nigeria’s financial system.
The revised manual takes effect as the CBN continues to implement reforms aimed at strengthening the country’s foreign exchange market and improving overall economic confidence.
