The Central Bank of Nigeria (CBN) has rolled out a new Foreign Exchange Manual aimed at boosting transparency, restoring confidence and stabilising the country’s foreign exchange market.
The revised manual, which took effect on June 1, is the first major update in eight years and forms part of ongoing reforms by the apex bank to create a more transparent and market-driven forex system.
Speaking at the launch, CBN Governor, Mr. Olayemi Cardoso, said the review became necessary due to major changes in the economy, including foreign exchange reforms, global market shocks and evolving business realities.
According to him, the new framework is designed to strengthen clarity, consistency and accountability in the management of foreign exchange transactions.
Among the key changes, the CBN increased allowable advance payments for imports from 15 per cent to 30 per cent, while 75 per cent of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) transactions will now be processed electronically.
The apex bank also removed the mandatory Form A requirement for remittances through ordinary domiciliary accounts, a move expected to reduce delays and ease access to foreign exchange services.
In addition, the revised manual introduces new provisions for service exports, technology-sector transactions, regional payments and non-resident investment accounts.
Deputy Governor in charge of Economic Policy, Dr. Muhammad Abdullahi, said the reforms were aimed at reducing transaction bottlenecks, improving processing timelines and encouraging greater participation in the official foreign exchange market.
Commercial banks welcomed the new framework, describing it as a major step towards market discipline and transparency.
Group Managing Director of United Bank for Africa (UBA), Mr. Oliver Alawuba, said the reforms would strengthen confidence in the forex market and improve liquidity, while the Group Managing Director of Access Holdings, Mr. Roosevelt Ogbonna, noted that the new rules would eliminate ambiguity and provide clearer guidelines for market operators.
The Federal Government also backed the initiative, saying a stable and transparent foreign exchange market remains critical to attracting investment, promoting trade and supporting economic growth.
Analysts believe the success of the reforms will depend largely on consistent implementation and adherence to the new rules by all market participants.
