FOREIGN EXCHANGE (MONITORING AND MISCELLANEOUS PROVISIONS) ACT

An Act establishes an autonomous foreign exchange market and grants oversight to the Central Bank of Nigeria for all currency transactions. It targets individuals, banks, and entities dealing in foreign exchange. This creates a transparent system to attract investment and ensure market stability.

What Is This Policy?

Nigeria's principal foreign exchange law establishing an autonomous foreign exchange market, granting the CBN oversight authority, and setting the legal framework for all foreign currency transactions. Central Bank of Nigeria Act; Banks and Other Financial Institutions Act (BOFIA); Constitution of the Federal Republic of Nigeria 1999 (Sections 162-163 on the Federation Account); Companies and Allied Matters Act; Customs, Excise Tariffs etc. (Consolidation) Act

All persons and entities transacting in foreign exchange in Nigeria Authorised dealer banks and Bureau de Change operators CBN as the supervisory authority International investors repatriating funds

Who Does It Target?

Businesses and individuals engaged in foreign exchange transactions including exporters, importers, and investors. Licensed foreign exchange dealers, bureaux de change, and banks. The Central Bank of Nigeria as the regulatory authority. International investors and diaspora remittance senders.

What Does It Aim to Achieve?

Create a transparent, market-based foreign exchange system, attract foreign investment through guaranteed repatriation rights, and vest supervisory authority in the CBN.

Key Features

Autonomous Market: Establishes the Autonomous Foreign Exchange Market enabling legitimate transactions at market rates. Repatriation Rights: Guarantees foreign investors the right to repatriate capital, profits, and dividends. CBN Oversight: Grants CBN broad powers to regulate the foreign exchange market and authorised dealers. Authorised Dealers: Only CBN-licensed banks and BDCs may deal in foreign exchange.

Current Status

Rollout Stage: Active Coverage: Nationwide foreign exchange market Beneficiaries: Investors; importers; exporters; economy Funding: Market-based

How to Access

Foreign exchange must be purchased through CBN-authorised dealers Provide supporting documentation for the transaction purpose Comply with CBN's Know Your Customer requirements Application method: Access foreign exchange through any authorised dealer bank or licensed BDC.

Important Terms

Unlicensed foreign exchange dealing is illegal Parallel market transactions attract criminal liability CBN may intervene in the market to stabilise the naira

Official Resources

Website: https://www.cbn.gov.ng Contact: Central Bank of Nigeria (CBN)

Legal Framework

Central Bank of Nigeria Act; Banks and Other Financial Institutions Act (BOFIA); Constitution of the Federal Republic of Nigeria 1999 (Sections 162-163 on the Federation Account); Companies and Allied Matters Act; Customs, Excise Tariffs etc. (Consolidation) Act