The Central Bank of Nigeria (CBN) has unveiled a sweeping revision of its foreign exchange regulatory framework, introducing a N100 million penalty for banks that process foreign exchange (FX) transactions without adequate documentation and tightening compliance requirements across the market.
Contained in the Fourth Edition of the Foreign Exchange Manual recently released, the new framework marked the first major review of the guide in nearly a decade and is aimed at strengthening transparency, improving market discipline and boosting confidence in Nigeria’s FX market.
Under the revised rules, authorised dealer banks found to have consummated foreign exchange transactions without adequate documentation will pay a N100 million fine in addition to N10 million for each affected transaction.
The apex bank said the manual was developed to promote transparency in foreign exchange inflows and outflows, establish clear documentation and reporting standards, strengthen enforcement mechanisms and ensure foreign exchange resources are channelled towards productive economic activities.
