The Central Bank of Nigeria (CBN) has 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 to improve transparency, liquidity, and confidence in Nigeria’s foreign exchange market.
Speaking during the unveiling ceremony in Abuja, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, said the revised manual 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 stated.
According to him, the revised framework became necessary due to changing global economic realities, domestic structural adjustments, and ongoing reforms within 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 said.
Cardoso explained that the fourth edition followed extensive consultations and technical reviews in line 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,” he added.
The CBN governor stressed that the successful implementation of the revised framework would require the cooperation of authorised dealer banks, regulators, ministries, exporters, importers, corporates, and other stakeholders.
He also disclosed that the apex bank would strengthen monitoring mechanisms to ensure fairness, accountability, and compliance across the foreign exchange 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,” Cardoso said.
In his remarks, the Deputy Governor, Economic Policy Directorate of the Central Bank of Nigeria, Muhammad Abdullahi, described the revised manual as part of broader institutional reforms introduced under Cardoso’s leadership.
According to Abdullahi, the reforms are aimed at restoring confidence, improving transparency, deepening liquidity, and strengthening efficiency within the foreign exchange market.
“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,” he said.
He noted that the revised framework was developed after consultations with authorised dealers, exporters, corporates, development partners, and regulators across both the public and private sectors.
Abdullahi explained that the review adopted an Ease of Doing Business approach to reduce transaction bottlenecks, operational inefficiencies, and market ambiguities.
Among the major reforms introduced in the revised manual is the harmonisation of the disbursement structure for Personal Travel Allowance and Business Travel Allowance with the 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.
The revised framework also increased the allowable advance payment for imports from 15 per cent to 30 per cent and introduced free processing of Form NXP.
Additional provisions were included for service exports, PAPSS transactions, remittances by technology companies, and non-resident investment accounts.
The manual further permits 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 allowed up to a maximum of $25,000 per semester.
Abdullahi also disclosed that the revised framework provides unfettered access for holders of export proceeds and ordinary domiciliary accounts, allows 100 per cent repatriation of export proceeds for foreign companies in the extractive sector, and removes 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 added.
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 for improving transparency, operational efficiency, and investor confidence.
“This initiative reflects our unwavering commitment to reforms that promote macroeconomic stability, accountability, and sustainable growth,” Danjuma said.
He expressed confidence that the revised manual would strengthen market discipline, improve regulatory compliance, and support ease of doing business in Nigeria.
Also speaking, the Chairman of the Body of Banks’ Chief Executive Officers and Group Managing Director of United Bank for Africa, Oliver Alawuba, commended the CBN for the ongoing reforms in the foreign exchange market.
Alawuba stated that the revised manual reinforced the apex bank’s policy direction on transparency, ethical conduct, improved oversight, and credible price discovery.
“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,” he said.
He assured the apex bank that commercial banks would support the implementation of the revised framework and comply fully with its provisions.
