Nigeria’s central bank has released a revised foreign exchange manual introducing stricter compliance rules for banks and limiting personal travel-related forex access to US$4,000 per quarter, as authorities move to tighten oversight of the currency market.
The Central Bank of Nigeria (CBN) said the fourth edition of its Foreign Exchange Manual updates operational guidelines for authorised dealers and seeks to improve transparency, curb abuses and stabilise the naira amid ongoing pressures in the forex market.
A key feature of the new framework is the retention of a Personal Travel Allowance (PTA) ceiling of up to US$4,000 per quarter for eligible Nigerians, including pilgrims and medical travellers.
The CBN said beneficiaries will only access the allocation once every quarter — defined as January–March, April–June, July–September and October–December — and must be Nigerian citizens aged 18 and above.
At least 75 per cent of the allowance must be disbursed through payment cards or other approved electronic channels, while the remaining 25 per cent may be provided in cash. The bank stressed that all forex must be obtained through authorised channels rather than the parallel market.
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The updated manual also introduces tighter documentation requirements for medical travel requests in addition to standard PTA eligibility conditions.
The policy further formalises rules for licensed hotels operating as authorised foreign exchange buyers. Such establishments must obtain approval from the Nigerian Tourism Development Authority and an Authorised Buyer licence before opening domiciliary accounts for forex transactions.
In a significant enforcement measure, the CBN imposed a N100 million penalty on financial institutions that process foreign exchange transactions without adequate documentation, alongside an additional N10 million fine per affected transaction.
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Repeat violations will attract progressively harsher sanctions, including a 90-day suspension from forex operations for first-time offenders, up to 360 days for subsequent breaches, and a potential full ban after a fourth infraction.
The central bank also maintained existing import procedures requiring businesses to process Form M through authorised dealers for all goods entering the country. Importers must provide supporting documents such as invoices, certificates of origin, packing lists and shipping documents.
The manual continues to enforce Cost and Freight (CFR) pricing for most imports and allows a 10 per cent variance on declared Form M values. Importers are also required to register with the Nigeria Customs Service before approvals are validated.
The CBN said the revised rules are anchored on existing legislation, including the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act of 1995, the CBN Act of 2007 and the Banks and Other Financial Institutions Act of 2020.
It said the measures are aimed at ensuring foreign exchange is allocated more efficiently and channelled toward productive sectors of the economy, while reducing speculative activity and leakages.
Analysts say the tighter framework reflects ongoing efforts by Nigerian authorities to restore confidence in the FX market, improve liquidity management and support broader macroeconomic stability, even as businesses continue to grapple with currency volatility and import costs.
