The Central Bank of Nigeria (CBN) has rolled out a sweeping update to its foreign exchange regulations, introducing stiff financial penalties and stricter compliance requirements for banks, exporters, importers and other authorised dealers operating in the FX market.
Under the new framework contained in the fourth edition of the CBN Foreign Exchange Manual released in May 2026, banks and authorised dealers found guilty of processing forex transactions without proper documentation will now pay a ₦100 million fine, in addition to ₦10 million for every affected transaction.
The apex bank explained that the revised manual, the first major overhaul since 2017, is designed to strengthen transparency, improve documentation standards, and ensure foreign exchange flows are properly monitored and directed toward productive sectors of the economy.
According to the new provisions, authorised dealers who breach documentation rules will face immediate sanctions aimed at curbing abuse and improving discipline in the foreign exchange market.
The updated rules also introduce graduated penalties for banks that exceed approved Net Open Position limits. A first violation will attract a warning letter, a second breach will result in a 10-working-day suspension from the FX market, while a third offence will lead to a 90-day suspension.
In addition, the CBN has tightened reporting obligations, mandating daily submission of FX transaction returns by 10 a.m. for the previous day, as well as monthly reports within five working days after each month ends. Late submissions will attract a ₦500,000 fine, while failure to render returns will cost at least ₦5 million, plus an additional ₦500,000 for each day of continued default.
The revised manual also warns against unauthorised reallocation of foreign exchange funds, stating that offenders risk heavy fines, suspension of dealership licences for at least six months, or outright revocation depending on the severity of the breach.
Import-related transactions were also affected, with new requirements compelling importers to submit Exchange Control Documents within 90 days of negotiating shipping papers with overseas banks. Failure to comply will attract escalating restrictions, ranging from 90 days to a full ban from the FX market after repeated violations.
Banks that fail to report importer defaults will also be sanctioned, including fines of ₦10 million per affected case.
For exporters, the CBN now requires non-oil export proceeds to be repatriated within 180 days, while oil and gas proceeds must be returned within 90 days. Non-compliance will attract penalties of 1% of the naira value of unreturned funds for exporters and 0.5% for banks.
The CBN further introduced operational reforms, including an increase in allowable advance payment for imports from 15% to 30%, a ±10% tolerance margin for Form M transactions, removal of Form NXP processing fees, and updated rules covering service exports, digital remittances, and regional payment systems.
It also set a limit of $25,000 per semester for tuition-related foreign remittances and removed the mandatory Form A requirement for certain domiciliary account transactions, while maintaining strict verification checks by banks.
The Central Bank of Nigeria said the reforms followed extensive consultations with stakeholders and are aimed at building a more transparent, efficient, and market-driven FX system.
CBN Governor Olayemi Cardoso stated that the changes reflect efforts to modernise Nigeria’s foreign exchange framework in line with evolving global and domestic economic realities.
According to Deputy Governor Muhammad Abdullahi, the updated manual is part of broader reforms to restore confidence, deepen liquidity, reduce transaction delays, and improve overall market efficiency.
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