CBN FX Manual Reform: Cardoso Bets on Rules to Stabilise Nigeria’s Foreign Exchange Market

Nigeria’s foreign exchange market has long struggled with instability, uncertainty, and policy inconsistencies that have affected importers, exporters, and investors alike. From delayed documentation processes to concerns over access to foreign currency, market participants have often operated in an environment shaped more by unpredictability than clear rules. Now, the Central Bank of Nigeria (CBN) is attempting to change that narrative with a major regulatory overhaul.

At the heart of this shift is the newly launched fourth edition of the CBN Foreign Exchange Manual, which became effective on June 1. Introduced eight years after the previous version, the updated framework reflects Nigeria’s changing economic realities, including pandemic disruptions, oil price volatility, and ongoing efforts to move toward a more market-driven exchange rate system.

CBN Governor Olayemi Cardoso described the reform as a necessary step toward building a more transparent and efficient FX system. According to him, foreign exchange is not just a financial tool but a key driver of economic stability, trade, and investor confidence. The new manual, he explained, is designed to reduce ambiguity, improve accountability, and ensure that FX operations follow clear and consistent rules.

Beyond policy statements, the revised manual introduces several practical changes that will directly affect businesses and individuals. These include the electronic processing of 75% of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) transactions, an increase in import advance payments from 15% to 30%, removal of Form A requirements for some domiciliary transactions, and expanded provisions for service exports and foreign education payments.

Market operators, especially banks, have welcomed the reforms, describing them as a step toward restoring discipline and confidence in the FX system. However, experts and stakeholders agree that the real test lies not in the design of the manual, but in its consistent implementation. As Nigeria continues to depend heavily on foreign exchange for trade and investment flows, the success of these reforms could play a critical role in shaping the country’s economic stability moving forward.

source: punch