The Central Bank of Nigeria (CBN) has unveiled a new set of foreign exchange regulations, introducing a ₦100 million penalty for banks and authorised dealers that process FX transactions without proper documentation.
The sanction is contained in the offences and penalties section of the fourth edition of the CBN Foreign Exchange Manual, released in May 2026 by the apex bank’s Trade and Exchange Department.
According to the policy document, any authorised dealer found guilty of processing foreign exchange deals without adequate documentation will pay ₦100 million, in addition to ₦10 million for each affected transaction.
The CBN stated, “Authorised dealers shall pay ₦100m in addition to ₦10m per transaction” for carrying out FX transactions with insufficient documentation.
The revised manual, the first major update since 2017, is designed to serve as a comprehensive guide for banks, exporters, importers, investors, and other participants in Nigeria’s foreign exchange market.
The apex bank said the new framework aims to improve transparency in FX inflows and outflows, strengthen documentation standards, enhance reporting compliance, and ensure foreign exchange is channelled into productive sectors of the economy.
It added that the reforms are intended to curb abuse in the FX market and enforce stricter compliance among authorised dealers and other operators.
Beyond the ₦100 million fine, the manual introduces several other penalties for violations of foreign exchange rules.
Banks that exceed their approved Net Open Position limits will face graduated sanctions. A first breach will attract a warning letter, a second offence will lead to a 10-working-day suspension from the FX market, while a third violation will result in a 90-day suspension.
The CBN also strengthened reporting requirements for authorised dealers, mandating daily submission of FX returns by 10 a.m. for the previous day, as well as monthly reports within five working days after month-end.
Failure to comply with reporting timelines will attract penalties. Late submission will cost ₦500,000, while failure to render returns will attract at least ₦5 million, plus an additional ₦500,000 for each day of continued default.
The apex bank warned against unauthorised reallocation of foreign exchange funds, noting that such actions could lead to heavy fines, suspension of dealership licences for at least six months, or outright revocation depending on severity.
It said the measures were necessary to safeguard the integrity of the foreign exchange market and ensure adherence to approved regulations.
The revised manual also tightened rules on import transactions, requiring importers to submit Exchange Control Documents within 90 days of negotiating shipping papers with overseas correspondent banks.
Non-compliance will attract escalating restrictions, ranging from a 90-day ban to a 360-day restriction, and eventually a full ban from FX transactions for repeated violations.
Banks that fail to report importer defaults will also be penalised, including a warning and a ₦10 million fine per affected transaction.
For exporters, the CBN directed that non-oil export proceeds must be repatriated within 180 days, while oil and gas proceeds must be returned within 90 days.
Failure to comply will attract penalties of 1 per cent of the naira value of unreturned proceeds for exporters and 0.5 per cent for banks that fail to enforce compliance.
The manual also empowers the CBN to sanction banks for delays in export documentation approvals, failure to remit export levies, and non-submission of required returns.
Operationally, the new guidelines raise allowable advance payment for imports from 15 per cent to 30 per cent and introduce a ±10 per cent tolerance margin for Form M values based on Cost and Freight calculations.
Processing fees for Form NXP have been removed, while new provisions now cover service exports, digital remittances, regional payment systems, non-resident accounts, and tuition payments.
Under the updated rules, students can now remit up to $25,000 per semester for foreign tuition payments, while the requirement for Form A has been removed for certain domiciliary account transactions—though banks must still verify the legitimacy of such transfers.
The CBN said the revised manual followed extensive consultations with stakeholders including banks, exporters, regulators, and development partners, and is aimed at building a more transparent and efficient FX market.
CBN Governor Olayemi Cardoso said the reforms reflect efforts to modernise Nigeria’s FX framework in response to evolving global and domestic economic conditions.
Deputy Governor Muhammad Abdullahi added that the changes are part of broader reforms to restore confidence, deepen liquidity, and improve market efficiency, stressing that the goal is to reduce friction and create a more seamless foreign exchange system.
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