Di Central Bank of Nigeria don launch di fourth edition of Foreign Exchange Manual, and dis one na big step to make forex market transparent, improve liquidity, and boost confidence for di economy. Di new manual go take effect from June 1, 2026, and e go serve as fresh guide for banks, importers, exporters, and oda market participants.
For decades, Nigeria forex market don be sensitive part of di economy. Any movement for naira value directly affect prices of food, transport, school fees, medicines, fuel, and manufacturing cost. Businesses depend on forex to import raw materials, while investors dey watch market stability before dem bring money. For ordinary Nigerians, forex market fit look far, but e dey affect dem through inflation, jobs, and purchasing power.
Di launch don attract wide attention across financial sector, banking industry, and business community. For recent years, Nigeria don face pressure on naira, low forex liquidity, multiple exchange rates, speculative trading, and declining investor confidence. Many manufacturers complain say dem no fit access forex to import raw materials, while airlines struggle to repatriate earnings. Foreign investors dey delay investments because dem fear say dem no go fit take out profits.
Di new manual represent more dan routine update. E reflect di latest phase of broader effort by CBN to rebuild confidence after years of instability. At di launch, CBN Governor Olayemi Cardoso say di manual na part of effort to strengthen macroeconomic foundation, improve transparency, and restore confidence for forex market. E make clear say forex market no just be platform for buying and selling dollars, but e play major role for price stability, investment confidence, and smooth movement of goods and capital.
Cardoso note say global economic conditions don change significantly over di past decade, and Nigeria no fit operate for isolation from international realities. E caution say if economy continue to do wetin e dey do domestically while global environment dey change, di results go be negative. Di forex reforms under Cardoso leadership dey focus on rebuilding market confidence, improving liquidity, and encouraging more private sector participation.
One major theme from di governor speech na transparency. E stress di need for openness, accountability, and fairness for di market. According to am, di new manual na result of extensive consultations with banks and stakeholders, no be document wey regulators impose alone. Dis collaborative approach dey address long-standing complaints say policy changes for forex market sometimes dey sudden, inconsistent, and unclear.
Cardoso issue strong warning against market abuse and unethical practices. E note say if those wey dey use di market subscribe to bad behavior, dem know wetin consequences go be. Dis warning reflect CBN concern about activities wey distort forex market, including speculative trading, round-tripping, and attempts to manipulate exchange rates. Round-tripping happen when people or institutions obtain forex at official rates and divert am for profit for oda segments of di market.
Di governor remarks suggest say CBN intend to combine market liberalization with stronger monitoring and enforcement. E say di ultimate goal of reforms na to create deeper and more liquid forex market. Liquidity mean ease wey buyers and sellers fit trade forex without causing major disruptions to prices. Cardoso explain say Nigeria forex market don evolve from one-way market where CBN na almost di sole provider of dollars. For di past, di market depend on periodic interventions from CBN, and participants just dey wait for next intervention.
Cardoso argue say dis situation dey change as di market become more dynamic and transparent. According to official disclosures, daily market turnover don increase from about $100 million during early days of current administration to between $400 million and $600 million per day. E disclose say di market don achieve transactions of up to $1 billion per day on some occasions for recent months. Higher transaction volumes dey indicate stronger market activity and improved confidence.
Di governor appear optimistic about possibility of achieving consistent daily turnover of $1 billion, target wey go represent major expansion for market depth. However, achieving such liquidity go require continued reforms, stronger investor confidence, and increased forex inflows from exports and investments.
Cardoso comments on reserves draw significant attention as e state directly say reserves na reserves, and no be wetin you look to fund a market. Dis statement reflect major shift for policy thinking compared to previous years when CBN frequently use foreign reserves to defend naira and supply di market. Economists don debate sustainability of relying heavily on reserves to support exchange rates. Di current approach favor more market-driven system where supply and demand play greater role while reserves dey preserved as buffers against external shocks.
Di deputy governor for Economic Policy, Mohammed Sani Abdullahi, provide deeper technical details about operational provisions of di manual. E trace di origins of reform initiative to assumption of office by Cardoso, note say e start from beginning of administration to restore confidence, improve transparency, deepen liquidity, and strengthen di market. Abdullahi say di central bank recognise urgent need for framework wey reflect current realities, align with international standards, reduce inefficiencies, and support more transparent, rules-based, and market-oriented system.
Di revised manual include harmonisation of disbursement structure for Personal Travel Allowance and Business Travel Allowance with revised Bureau De Change guidelines. Seventy-five percent of PTA and BTA go dey disbursed electronically, while remaining twenty-five percent fit be paid for cash. Another reform na increase for allowable advance payment for imports from fifteen percent to thirty percent. Di manual also introduce allowable limits for imports with shortfall or excess delivery margins of plus or minus ten percent of Cost and Freight value on Form M.
Abdullahi announce say processing of Form NXP go now be free of charge, wey go reduce overhead costs for exporters and encourage non-oil export activities. Significant provisions relating to service exports don dey introduced to recognise growth of Nigeria knowledge-based and digital economy, including sectors like technology, entertainment, consulting, and digital services. Di manual introduce provisions for PAPSS transactions to support regional payment integration and intra-African trade under African Continental Free Trade Area.
Di updated rules allow payments for services, fees, and charges to be made for foreign currency where receipts dey generated for foreign currency, benefiting sectors like aviation and international services. To improve access for foreign investors, di revised manual introduce Non-Resident Investment Accounts and Non-Resident Ordinary Accounts. For families funding studies abroad, e include clear provision for payment of undergraduate and postgraduate tuition fees subject to maximum limit of $25,000 per semester.
Di manual grant unfettered access for holders of export proceeds and ordinary domiciliary accounts, allowing transfers from export proceeds domiciliary account for one bank to ordinary domiciliary account for anoda bank for eligible transactions. E establish provision for one hundred percent repatriation of export proceeds for foreign companies operating for extractive industries. E also remove mandatory requirement for Form A for remittances using ordinary domiciliary accounts.
Di revised manual include provisions explicitly disallowing front-loading of forex purchases to restrict participants from buying forex far ahead of actual needs for speculative hoarding. Stakeholder perspectives show rare level of alignment between fiscal authorities, monetary regulators, and banking sector. Representing Minister of Finance, Permanent Secretary for Special Duties, Mohammed Sanusi Danjuma, describe di manual as major step for country effort to strengthen forex management system. E note say di launch come at strategic period as country continue implementing bold fiscal and non-fiscal reforms under administration of Bola Ahmed Tinubu.
Oliver Alawuba, Chairman of Body of Banks Chief Executives and Group Managing Director of United Bank for Africa, describe di revised manual as part of broader policy direction anchored on transparency, ethical conduct, stronger documentation, and improved oversight. E link am to earlier initiatives like Electronic Foreign Exchange Matching System and Nigerian Foreign Exchange Code. Alawuba make striking comparison between current forex market and situation two or three years ago, note say for di past, bank customers dey constantly ask whether banks get forex available, but today di table don turn to point where banks dey ask customers whether dem get forex to sell.
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