The Central Bank of Nigeria (CBN) has introduced a ₦100 million penalty for banks and authorised dealers that process foreign exchange transactions without adequate documentation.
The sanction is contained in the offences and sanctions section of the fourth edition of the CBN Foreign Exchange Manual, released by the apex bank’s Trade and Exchange Department in May 2026.
According to the manual, authorised dealers involved in such transactions will pay ₦100m, in addition to ₦10m for each affected transaction.
The manual stated, “Authorised dealers shall pay ₦100m in addition to ₦10m per transaction” for consummating foreign exchange transactions with inadequate documentation.
The revised manual, the first major update since 2017, is expected to serve as a regulatory guide for banks, authorised buyers, exporters, investors and members of the public involved in foreign exchange transactions.
The CBN said the new framework was designed to improve transparency in foreign exchange inflows and outflows, strengthen documentation and reporting standards, and support enforcement across the foreign exchange market.
It added that the reforms would ensure that foreign exchange was channelled to productive uses in line with national economic priorities.
The apex bank said the manual would also help reduce abuses in the Nigerian Foreign Exchange Market and improve compliance by authorised dealers and other participants.
Apart from the ₦100m sanction, the manual introduced several other penalties for banks and other operators found to have violated foreign exchange rules.
Under the revised rules, banks that exceed their approved Net Open Position limits will face graduated sanctions.
A first offence will attract a warning letter, while a second breach will lead to a 10-working-day suspension from the foreign exchange market.
A third violation will attract a 90-day suspension from the market.
The CBN also imposed stricter reporting obligations on authorised dealers, requiring them to submit daily returns on foreign exchange transactions by 10 a.m. for the preceding day.
Monthly returns must also be submitted within five working days after the end of each month.
Failure to comply with the reporting timeline will attract sanctions.
Under the new rules, late rendition of returns will attract a fine of ₦500,000, while non-rendition will attract a minimum penalty of ₦5m and an additional ₦500,000 for every day the violation continues.
The apex bank also warned banks against reallocating foreign exchange funds without regulatory approval.
It said such breaches could lead to monetary fines, suspension of authorised dealership licences for at least six months, or outright licence revocation, depending on the severity of the offence.
The CBN said the measures were necessary to protect the integrity of the foreign exchange market and ensure that operators complied with approved rules.
The revised manual also introduced tighter rules for import-related transactions.
Importers are now required to submit Exchange Control Documents within 90 days of negotiating shipping documents with overseas correspondent banks.
Those who fail to comply will be restricted from conducting valid and invalid foreign exchange transactions, including the processing of Form M applications.
Under the new regime, first-time offenders will face a 90-day restriction, while a second violation will attract a 180-day restriction.
A third offence will lead to a 360-day restriction, while a fourth violation will result in a complete ban from the foreign exchange market.
Banks that fail to report such defaults will also face sanctions, including a warning and a ₦10m penalty for each affected transaction.
The CBN also imposed stricter obligations on exporters under the revised framework.
For non-oil exports, proceeds must be repatriated and credited to exporters’ domiciliary accounts within 180 days of shipment.
For oil and gas exports, proceeds must be received within 90 days.
Exporters that fail to repatriate proceeds within the stipulated period will pay a penalty equivalent to one per cent of the naira value of the outstanding proceeds.
Banks that fail to ensure compliance will be fined 0.5 per cent of the outstanding amount.
The manual also empowers the CBN to sanction banks for late approvals of export documentation, non-remittance of export supervision levies, and failure to render returns on export proceeds.
In addition to the sanctions, the revised manual introduced several operational reforms aimed at improving market efficiency.
The CBN increased the allowable advance payment for imports from 15 per cent to 30 per cent.
It also introduced a permissible import shortfall or excess margin of plus or minus 10 per cent of the Cost and Freight value on Form M.
The apex bank further removed processing fees for Form NXP used for export transactions.
The manual also contains new provisions covering service exports, technology-related remittances, Pan-African Payment and Settlement System transactions, non-resident investment accounts, and tuition fee remittances.
Under the new guidelines, tuition fee remittances of up to $25,000 per semester are allowed for undergraduate and postgraduate studies abroad.
The CBN also removed the mandatory requirement for Form A in remittances funded through ordinary domiciliary accounts.
However, banks are still required to verify the legitimacy and purpose of such transactions before processing them.
The apex bank said the revised manual was developed after extensive consultations with banks, exporters, corporates, regulators and development partners.
It added that the reforms were intended to support a transparent, rules-based and market-oriented foreign exchange system.
According to the CBN, the manual is expected to improve compliance, reduce transaction bottlenecks, deepen market confidence, attract investment inflows and strengthen the integrity of Nigeria’s foreign exchange market.
The Governor of the CBN, Olayemi Cardoso, had earlier said the initiative reflected the apex bank’s commitment to strengthening macroeconomic stability and modernising Nigeria’s foreign exchange administration.
He said the revision became necessary because of changing global economic conditions, domestic structural adjustments and ongoing reforms in the country’s foreign exchange market.
The Deputy Governor, Corporate Services Directorate of the CBN, Dr Muhammad Abdullahi, also said the revised manual formed part of broader reforms introduced under Cardoso’s leadership to restore confidence, improve transparency, deepen liquidity and strengthen market efficiency.
He said the review was carried out to align Nigeria’s foreign exchange framework with current market realities and international best practices.
“Our goal is to reduce transaction frictions, 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,” Abdullahi said.
