A new Foreign Exchange (FX) manual that spells out operational behaviours in the Nigerian foreign exchange market will take effect on June 1, 2026, the governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said.
 
The governor, who disclosed this in Abuja on Friday while unveiling the fourth edition of the CBN Forex Manual, said the newly revised foreign exchange manual reflects the apex bank’s commitment to reforms aimed at promoting macroeconomic stability, transparency, accountability, and sustainable economic growth in Nigeria.
 
Speaking on the theme, ‘Building Confidence in Nigeria’s FX Market: Revised Framework for Transparency and Accountability,’ Cardoso described the foreign exchange market as a critical pillar of every modern economy, stressing that its effectiveness depends on clarity, consistency, compliance, and public confidence.
 
He noted that the revised manual comes at a strategic moment in Nigeria’s economic reform journey, as the government implements fiscal and non-fiscal measures to stabilise the economy and reposition it for growth.
 
According to him, the revised framework became necessary following structural changes in the domestic economy, increasing global economic uncertainties, inflationary pressures, and ongoing reforms in Nigeria’s foreign exchange market.
 
Cardoso said the manual, last reviewed in 2018, was developed through extensive consultations with banks, regulators, and other stakeholders to ensure that diverse industry concerns were adequately reflected.
 
He announced that the new FX manual will take effect from June 1, 2026, emphasising that the successful implementation of the framework would require the cooperation of authorised dealer banks, exporters, importers, regulators, ministries, departments and agencies, as well as the broader private sector.
 
He declared that stability in the foreign exchange market is a shared responsibility between the regulator and market participants.
 
The CBN governor stated that the apex bank would continue to strengthen its monitoring systems to ensure consistency, fairness, accountability, and compliance across the foreign exchange ecosystem.
 
He also highlighted improvements in market liquidity, noting that average daily turnover in Nigeria’s FX market has increased from about $100 million at the beginning of the current administration to between $400 million and $600 million, with the market recording $1 billion in turnover on several occasions in recent months.
 
The CBN governor expressed optimism that the reforms would deepen market liquidity, reduce excessive reliance on external reserves for interventions, and foster greater confidence among investors and market participants.
 
Deputy Governor, Economic Policy Directorate of the CBN, Dr. Muhammad Sani Abdullahi, explained that the manual harmonises the disbursement structure for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) with the provisions of the revised BDC Guidelines, whereby 75 per cent shall be disbursed through electronic channels while the remaining 25 per cent may be paid in cash.
 
It also reviews the allowable advance payment for imports, increasing it from 15 per cent to 30 per cent.
 
According to him, processing of Form NXP shall now be free of charge from June 1, 2026.
 
The new manual also introduces provisions relating to service exports, including documentation requirements and reporting obligations.
 
From June 1, payments for services, fees, and charges to be made in foreign currency when receipts are generated in that currency will be allowed.
 
Provisions for the payment of tuition fees for undergraduate and postgraduate studies have now been included, subject to a maximum limit of $25,000 per semester.
 
The mandatory requirement for Form A for remittances using ordinary domiciliary accounts has been removed, ensuring that authorised dealer banks continue to verify the legitimacy and purpose of such transactions.
 
The Group Managing Director and Chief Executive Officer of United Bank for Africa, Oliver Alawuba, commended the CBN for its interventions and policy reforms in the foreign exchange market.
 
Alawuba said there had been a significant improvement in confidence in the Nigerian economy, noting that unlike in previous years when customers constantly sought foreign exchange from banks, banks are now increasingly asking customers whether they have FX to trade.
 
He assured the CBN that banks would uphold discipline, transparency, and compliance in implementing the provisions of the revised FX manual.