EXCHANGE CONTROL ACT, 1962
Act · Trade
Policy date: 1995-01-01
An Act that requires government approval for most foreign currency transactions to control exchange rates. It targets individuals, businesses, and banks dealing in foreign exchange, with the Central Bank of Nigeria as the main authority.
EXCHANGE CONTROL ACT, 1962
What Is This Policy?
The original legislation establishing exchange control in Nigeria, requiring government approval for most foreign currency transactions, largely replaced by the more liberal FEMAP Act of 1995.
Who Does It Target?
Historically: all persons transacting in foreign currency CBN as the exchange control authority Commercial banks as authorised dealers Importers and exporters
What Does It Aim to Achieve?
Control Nigeria's foreign exchange reserves by restricting currency movements and ensuring all foreign currency transactions were approved by the CBN.
Key Features
Exchange Control: Required CBN approval for virtually all transactions involving foreign currency. Authorised Dealers: Only banks approved by CBN could deal in foreign exchange. Repatriation: All foreign exchange earnings had to be surrendered to CBN or authorised dealers. Penalties: Unauthorised foreign exchange dealings attracted severe criminal penalties.
Current Status
Rollout Stage: Largely superseded — FEMAP Act 1995 liberalised the foreign exchange regime Coverage: Foreign exchange transactions Beneficiaries: Historical — foreign exchange management Funding: Not applicable
How to Access
Refer to FEMAP Act for current foreign exchange regime Some residual Exchange Control Act provisions may still apply in specific circumstances Application method: Engage CBN for foreign exchange regulatory queries.
Important Terms
FEMAP Act 1995 significantly liberalised the exchange control regime Some Exchange Control Act provisions remain operative where not inconsistent with FEMAP CBN guidelines now govern most foreign exchange operations
Official Resources
Website: https://www.cbn.gov.ng Contact: Central Bank of Nigeria (CBN)
Legal Framework
The Exchange Control Act 1962 was the primary foreign exchange legislation until repealed by the Exchange Control (Repeal) Act 1995. It is recognized under Section 315 of the 1999 Constitution as a pre-1999 instrument. The Act derived authority from the Federal Government's exclusive legislative power over currency and foreign exchange under the Exclusive Legislative List. It aligned with the IMF Articles of Agreement on exchange restrictions applicable at the time.