The Central Bank of Nigeria (CBN) has implemented a revised foreign exchange regulatory framework with a N100 million penalty for defaulting banks.
Going forward banks that process foreign exchange (FX) transactions without adequate documentation risks N100 million in fine.
The new rules were contained in the Fourth Edition of the Foreign Exchange Manual recently released by the apex bank.
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.
“The Central Bank remains resolute in ensuring that the foreign exchange market operates in a fair, transparent, and accountable manner,” the regulator stated in the document.
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.
Beyond the monetary sanction, the manual introduces stricter documentation requirements for customer foreign exchange transactions, forward contracts and swap arrangements. Banks are required to obtain and verify relevant supporting documents before foreign currency can be delivered to customers or transactions settled.
