CBN releases FX manual and gives extractive firms full proceeds access

…raises import advance payment to 30%

By Emma Ujah, Abuja Bureau Chief

The Central Bank of Nigeria (CBN) has released the fourth edition of its Foreign Exchange Manual, granting foreign firms in the extractive sector full, unrestricted access to the proceeds from their exports.

During the launch in Abuja, Governor Olayemi Cardoso announced that the manual also raises the permissible advance payment for imports from 15% to 30%. The new rules will take effect on 1 June 2026.

Speaking to the managing directors of banks and other stakeholders, Governor Cardoso described the manual as a step toward strengthening Nigeria’s macro‑economic foundations, enhancing transparency, and reinforcing confidence in the foreign‑exchange market.

He said it is a critical reference document for participants in Nigeria’s FX market because it harmonises procedures, standardises market practices, and provides a framework backed by robust institutional oversight.

“In today’s global environment – marked by volatility, rapid technological change, and increasingly complex cross‑border financial flows – the integrity of a country’s FX governance framework is essential for sustaining resilience and confidence,” Cardoso said. “Our regulatory systems must continue to evolve in response to both global and domestic economic dynamics. Over the past decade, the global economy has become increasingly complex and uncertain, while the domestic economy has undergone structural adjustments, including efforts to diversify foreign‑exchange earnings and manage inflationary pressures. These developments have direct implications for investor confidence and market behaviour.”

The governor added that ongoing FX market reforms required a revised manual to provide a more coherent and forward‑looking regulatory framework. He noted that the last edition was issued in 2018, making this review both timely and necessary.

“This Fourth Edition is the result of extensive consultation and rigorous technical review, aligned with international best practices. It reflects our commitment to modernising foreign‑exchange administration to enhance clarity, consistency, and market efficiency,” the governor said.

Cardoso emphasised that successful implementation depends on the commitment of all stakeholders and called on authorised dealer banks, corporates, regulators, ministries, departments and agencies, exporters, importers, and the wider private sector to adopt the provisions with diligence and professionalism.

“Your adherence is essential, your cooperation indispensable, and your partnership remains central to the stability and credibility of the Nigerian foreign‑exchange market,” he added. “The CBN remains committed to providing guidance, support, and clarification as we enter this new phase of FX governance. To support seamless adoption, the manual will be readily available at no cost to authorised dealers, reflecting our priority on compliance over cost recovery. We will continue to strengthen our monitoring framework to ensure consistency, fairness, and accountability across the system.”

In his remarks, Deputy Governor for Economic Policy Dr. Muhammad Abdullahi said the comprehensive review was initiated by the governor at the start of his administration as part of a broader reform agenda aimed at restoring confidence, improving transparency, deepening market liquidity, and strengthening the overall functioning of Nigeria’s FX market.

He added, “From the outset, the Governor recognised the urgent need for a foreign‑exchange framework that reflects current market realities, aligns with international best practices, reduces operational inefficiencies and supports a more transparent, rules‑based and market‑oriented system.”

“The revised manual is not a stand‑alone exercise. It forms part of a deliberate institutional reform effort designed to strengthen the integrity and credibility of Nigeria’s foreign‑exchange system,” the deputy governor continued. “We approached this review through a strong ease‑of‑doing‑business lens. Consequently, several bottlenecks, ambiguities and duplicative requirements identified by stakeholders have now been addressed.”

“Our goal is to reduce transaction friction, improve processing timelines, deepen market confidence, encourage formal market participation and create a more seamless and efficient experience for legitimate users of Nigeria’s foreign‑exchange market,” he said.

During his goodwill address, Oliver Alawuba, chairman of the Body of Banks MDs and CEO of United Bank for Africa, pledged the cooperation of banks to ensure a successful implementation of the manual. He acknowledged that the CBN had consulted widely before finalising the document and that banks were ready to comply with the new provisions.

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