The CBN’s 4th Edition Foreign Exchange (FX) Manual for Forex Market Reforms will take effect from June 1, 2026. The 4th Edition was released as part of the ongoing improvement channelled towards transparency, liquidity, and confidence in the Nigerian FX market.
In other words, the edition is a revised version of the FX manual designed to modernise foreign exchange operations. The edition is also aimed at modernising FX administration.
Key Policy Updates in the New FX Manual
Here are the major reforms introduced in the revised FX manual:
- The allowable advance payment for imports has been increased to 30% from 15%.
- Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) disbursements are now 75% electronic and 25% cash.
- Free processing of Form NXP has been introduced
- Provisions for service exports, PAPSS transactions, remittances by tech firms, and non-resident investment accounts are also implemented.
- Payments for services, tuition fees (up to $25,000 per semester) and fees with receipts in foreign currency are now allowed.
- Holders of export proceeds and ordinary domiciliary accounts can now have full access to their funds.
- Foreign extractive companies can repatriate 100% of their profits.
- Form A has now been eliminated from the requirement for domiciliary remittance. In other words, Form A is no longer required for domiciliary remittances.
These updates are implemented for the purpose of improving operational efficiency for authorised dealers, corporates, and other FX stakeholders. It will also serve as a reference for market participants, aligning operational processes, bringing consistency to market practices, and establishing a structured framework backed by robust institutional supervision to strengthen confidence among both local and foreign investors.
However, the CBN Governor Olayemi Cardoso has beseeched all market participants and stakeholders to indispensably comply strictly with the manual so that the success of the reforms will be yielded. The apex bank also clarified that the manual will be available to authorised dealers at no cost to encourage compliance.
