The Central Bank of Nigeria (CBN) has launched the fourth edition of its Foreign Exchange Manual as part of ongoing reforms to improve transparency, liquidity, and confidence in the country’s forex market.
The revised framework will take effect from June 1, 2026.
CBN Governor Olayemi Cardoso announced the launch on Friday in Abuja.
Cardoso Highlights Need for Reform
Cardoso said the updated manual reflects the CBN’s commitment to stronger macroeconomic stability and a modern foreign exchange system.
“This unveiling reflects our collective commitment to strengthening Nigeria’s macroeconomic foundations, enhancing transparency, and reinforcing confidence in the foreign exchange market,” he said.
He explained that global economic uncertainty and domestic structural changes made the revision necessary.
According to him, Nigeria’s efforts to diversify foreign exchange earnings and control inflation also influenced the update.
Cardoso said the new edition followed extensive consultation and technical review.
He added that the manual aligns with international best practices and aims to improve clarity and market efficiency.
“The Manual will take effect on June 1, 2026,” he stated.
CBN Calls for Stakeholder Cooperation
Cardoso urged banks, regulators, businesses, and government agencies to support the implementation of the new framework.
He stressed that compliance from all stakeholders remains essential for market stability.
“Your adherence is essential, your cooperation indispensable,” he said.
He also said the CBN will strengthen monitoring systems to ensure fairness and accountability.
The apex bank will distribute the manual free of charge to authorised dealers to support smooth adoption.
Abdullahi Says Reform Targets Efficiency
CBN Deputy Governor for Economic Policy, Dr Muhammad Abdullahi, said the revision forms part of broader reforms under Cardoso’s leadership.
He said the goal includes restoring investor confidence, improving transparency, and deepening market liquidity.
Abdullahi said the CBN designed the manual after consultations with banks, exporters, corporates, and development partners.
He added that the review followed an Ease of Doing Business approach to reduce delays and inefficiencies.
“Our goal is to reduce transaction frictions, improve processing timelines,” he said.
New Rules Introduced in FX Framework
Abdullahi outlined key changes in the revised manual.
The CBN will now disburse 75 per cent of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) electronically. It will allow 25 per cent in cash.
The bank also raised allowable advance payment for imports from 15 per cent to 30 per cent.
It introduced free processing of Form NXP and new provisions for service exports and PAPSS transactions.
The framework now covers remittances by tech companies and non-resident investment accounts.
It also allows foreign currency payments for services when receipts come in foreign currency.
The manual permits tuition payments for overseas studies up to $25,000 per semester.
Abdullahi added that exporters and domiciliary account holders will enjoy improved access to funds.
He also confirmed full repatriation of export proceeds for foreign firms in the extractive sector.
The CBN has also removed the mandatory Form A requirement for certain domiciliary account remittances.
Finance Ministry and Banks Welcome Reform
Representing the Finance Minister, Permanent Secretary Mohammed Danjuma said the revised manual will improve transparency and investor confidence.
He described the reform as part of efforts to strengthen macroeconomic stability and accountability.
“This initiative reflects our unwavering commitment to reforms that promote macroeconomic stability,” he said.
He added that the changes will improve regulatory compliance and ease of doing business.
Banks Back CBN Reform Agenda
Chairman of the Body of Banks’ Chief Executive Officers and UBA Group Managing Director, Oliver Alawuba, praised the CBN for the reforms.
He said the new framework has improved confidence in the Nigerian economy.
“The table has been turned,” he said.
Alawuba assured that commercial banks will support full implementation of the manual and comply with its provisions.
