CENTRAL BANK (CURRENCY CONVERSION) ACT
Act · Trade
An Act regulates the conversion of the naira and manages currency exchanges. It targets banks, bureau de change operators, and the Central Bank by authorizing only approved dealers. This ensures proper management of exchange rates and foreign transactions.
CENTRAL BANK (CURRENCY CONVERSION) ACT
What Is This Policy?
An Act authorising and regulating the conversion of the Nigerian currency (naira) and providing for related matters including the legal framework for currency exchanges. Central Bank of Nigeria Act; Foreign Exchange (Monitoring and Miscellaneous Provisions) Act; Banks and Other Financial Institutions Act (BOFIA); Constitution of the Federal Republic of Nigeria 1999
Bureau de Change operators Banks and authorised dealers in foreign exchange The Central Bank of Nigeria Persons converting naira to foreign currencies or vice versa
Who Does It Target?
The Central Bank of Nigeria as the monetary authority. Holders of old or pre-decimal Nigerian currency. Banks and financial institutions facilitating currency conversion. The Federal Government and the National Assembly overseeing currency management.
What Does It Aim to Achieve?
Regulate currency exchange in Nigeria, authorise the CBN to manage the exchange rate, and prescribe the conditions under which currency conversion may take place.
Key Features
CBN Authority: Grants the CBN authority to regulate and manage all aspects of currency exchange in Nigeria. Authorised Dealers: Only CBN-authorised dealers (banks and licensed BDCs) may engage in currency exchange. Exchange Rate Management: Provides the legal basis for CBN's management of the official exchange rate. Offences: Unauthorised currency dealing is a criminal offence.
Current Status
Rollout Stage: Active Coverage: Nationwide foreign exchange market Beneficiaries: Currency users; foreign exchange market stability Funding: Not applicable
How to Access
Currency exchange must be conducted through CBN-authorised dealers BDC operators must hold a valid CBN licence Documentary requirements for significant foreign exchange transactions must be met Application method: Exchange currency through authorised banks or licensed Bureau de Change operators.
Important Terms
Black market currency dealing is illegal Currency export limits apply; large currency movements require CBN approval Exchange rate movements reflect CBN monetary policy and market conditions
Official Resources
Website: https://www.cbn.gov.ng Contact: Central Bank of Nigeria (CBN)
Legal Framework
Central Bank of Nigeria Act; Foreign Exchange (Monitoring and Miscellaneous Provisions) Act; Banks and Other Financial Institutions Act (BOFIA); Constitution of the Federal Republic of Nigeria 1999