EXCHANGE CONTROL (REPEAL) ACT, 1995

An Act that repeals the previous exchange control legislation and establishes a market-oriented foreign exchange system. It targets all participants in the foreign exchange market, including businesses and investors, to promote free capital flows and economic liberalisation.

What Is This Policy?

A 1995 Act that formally repealed the Exchange Control Act 1962, liberalising Nigeria's foreign exchange regime and replacing detailed exchange controls with the more market-oriented foreign exchange system under the FEMAP Act 1995.

Who Does It Target?

All foreign exchange market participants (historical) CBN transitioning from exchange controls to the autonomous market Nigerian businesses freed from exchange control restrictions Foreign investors with new repatriation guarantees

What Does It Aim to Achieve?

Liberalise Nigeria's foreign exchange market by removing the restrictive exchange control framework, enabling market-based exchange rate determination and free capital flows for legitimate purposes.

Key Features

Exchange Control Repeal: Formally repeals the Exchange Control Act 1962 and all subsidiary legislation. Market Liberalisation: Removes the requirement for CBN approval for most foreign exchange transactions. Transition: Provides transition arrangements for outstanding exchange control approvals. FEMAP Successor: The FEMAP Act 1995 provides the new framework replacing exchange controls.

Current Status

Rollout Stage: Enacted 1995 — repeal took effect Coverage: Nigerian foreign exchange market Beneficiaries: Investors; traders; Nigerian economy through liberalisation Funding: Not applicable

How to Access

Historical reference — the FEMAP Act 1995 now governs forex Engage CBN and authorised dealers for current foreign exchange requirements Application method: Current foreign exchange: engage authorised dealer banks.

Important Terms

The 1995 liberalisation was a major economic reform ending decades of strict exchange control FEMAP Act 1995 provides the current framework with CBN oversight rather than approval requirements Full float of the naira was not achieved — CBN retains significant market influence

Official Resources

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

Legal Framework

The Exchange Control (Repeal) Act 1995 derives constitutional authority from the National Assembly's power to legislate on foreign exchange. It repealed the Exchange Control Act 1962 and was superseded by the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act 1995 (FEMA), which now provides the primary framework for foreign exchange transactions, administered by the Central Bank of Nigeria under the CBN Act 2007.