Central Bank of Nigeria introduces N100m penalty for forex transaction documentation failures
via Punch Nigeria4 min read
The Central Bank of Nigeria CBN has unveiled a revised Foreign Exchange Manual, introducing a N100 million penalty for banks that process foreign exchange transactions without adequate documentation, in addition to N10 million per transaction. This measure is part of a comprehensive compliance regime aimed at enhancing oversight of Nigeria's foreign exchange market, bolstering compliance standards, and curbing abuses among authorized dealers and other market participants. The manual, updated in May 2026, is the first major revision since 2017 and serves as a regulatory guide for various entities involved in foreign exchange transactions. It seeks to promote transparency, establish clear documentation and reporting requirements, strengthen enforcement mechanisms, and channel foreign exchange towards productive uses to support national economic priorities. Beyond the N100 million sanction, the manual outlines various penalties for violations, including escalating punishments for banks exceeding Net Open Position limits, fines for late or non-rendition of daily and monthly returns, and potential suspension or revocation of authorized dealership licenses for reallocating foreign exchange without approval. Importers face restrictions for failing to submit Exchange Control Documents within 90 days, with penalties ranging from 90-day to complete market bans. Exporters are required to repatriate non-oil export proceeds within 180 days and oil and gas proceeds within 90 days, with pen
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This summary was AI-generated from a story originally published by Punch Nigeria.
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