The Central Bank of Nigeria has launched the fourth edition of its Foreign Exchange Manual, effective June 1, 2026, as part of broader efforts to make Nigeria’s foreign exchange market more transparent, predictable, and efficient. The revised manual replaces the 2018 version and reflects major economic changes over the past eight years, including exchange rate reforms, foreign exchange shortages, and the transition towards a more market-driven currency regime.
Speaking at the launch, CBN Governor Olayemi Cardoso said the updated framework is designed to strengthen confidence in the FX market by providing clearer rules, improving transparency, and reducing uncertainty for businesses, investors, exporters, and financial institutions.
He described foreign exchange as a critical driver of trade, investment, and economic stability.
According to the apex bank, the revised manual forms part of a broader reform agenda aimed at restoring confidence and improving market efficiency. Deputy Governor Muhammad Abdullahi said the new guidelines seek to eliminate bottlenecks, standardise procedures, deepen liquidity, and ensure that market participants operate under a more predictable regulatory framework.
Several significant changes were introduced under the revised rules. Personal Travel Allowance and Business Travel Allowance transactions will now be processed mostly electronically, with 75 per cent disbursed digitally and only 25 per cent in cash. The CBN also increased allowable advance payments for imports from 15 per cent to 30 per cent, providing businesses with greater flexibility when dealing with foreign suppliers.
The manual introduces new provisions covering service exports, technology-sector remittances, and transactions conducted through the Pan-African Payment and Settlement System. It also removes charges for processing Form NXP, the key export documentation platform, and creates new account categories for non-resident investors and businesses.
For individuals and businesses, the reforms remove the mandatory Form A requirement for remittances through ordinary domiciliary accounts, although banks will still verify the legitimacy of transactions. The framework also permits tuition fee payments of up to $25,000 per semester for students studying abroad and allows transfers between export proceeds domiciliary accounts and ordinary domiciliary accounts under specified conditions.
Commercial banks welcomed the reforms, describing them as a step towards greater market discipline and transparency. Banking executives argued that clearer rules and stronger compliance standards would reduce ambiguity, improve confidence, and support the development of a more stable and efficient foreign exchange market.
While the revised manual provides a clearer operational framework for the FX market, stakeholders note that its long-term success will depend on consistent implementation and broader economic reforms. Analysts say stronger export earnings, improved investor confidence, increased foreign exchange inflows, and sustained policy consistency will be critical to achieving the stable and liquid market the CBN is targeting.
