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…raises import advance payment to 30%
By Emma Ujah, Abuja Bureau Chief
The Central Bank of Nigeria (CBN) has launched the 4th Edition of the Foreign Exchange Manual which grants foreign companies in the extractive industry 100 percent unfettered access to their export proceeds.
The FX Manual which was launched by the CBN Governor, Mr. Olayemi Cardoso, today in Abuja, also provides an upward review of allowable advance payment for imports from 15 per cent to 30 per cent. The Manual will take effect on June 1, 2026.
Addressing banks’ Managing Directors (MDs) and other stakeholders at the event, Gov. Cardoso described the new manual as a step towards strengthening Nigeria’s macroeconomic foundations, enhancing transparency, and reinforcing confidence in the foreign exchange market.
He said it was a critical reference document for participants in Nigeria’s foreign exchange market as it harmonises procedures, standardises market practices and provides stakeholders with the confidence to operate within a framework supported by strong institutional oversight.
According to Mr. Cardoso, “In today’s global environment – marked by volatility, rapid technological change, and increasingly complex cross-border financial flows – the integrity of a country’s FX governance framework is essential for sustaining resilience and confidence.
“Our regulatory systems must continue to evolve in response to both global and domestic economic dynamics. Over the past decade, the global economy has become increasingly complex and uncertain, while the domestic economy has undergone structural adjustments, including efforts to diversify foreign exchange earnings and manage inflationary pressures. These developments have direct implications for investor confidence and market behaviour.”
The CBN boss added that ongoing foreign exchange market reforms have made it necessary to revise the Manual to provide a more coherent and forward-looking regulatory framework.
He said the last edition was issued in 2018, making this review both timely and necessary.
“This Fourth Edition is the result of extensive consultation and rigorous technical review, aligned with international best practices. It reflects our commitment to modernising foreign exchange administration to enhance clarity, consistency, and market efficiency, the governor said.
Mr. Cardoso said the successful implementation of this Manual depends on the commitment of all stakeholders and therefore called on Authorized Dealer Banks, corporates, regulators, Ministries, Departments and Agencies (MDAs), exporters, importers, and the broader private sector to embrace its provisions with diligence and professionalism.
His words, “Your adherence is essential, your cooperation indispensable, and your partnership remains central to the stability and credibility of the Nigerian foreign exchange market.
“The CBN remains committed to providing guidance, support, and clarification as we enter this new phase of FX governance. To support seamless adoption, the Manual will be readily available at no cost to Authorized Dealers, reflecting our priority on compliance over cost recovery.
“We will continue to strengthen our monitoring framework to ensure consistency, fairness, and accountability across the system.
In his remarks, the CBN Deputy Governor for Economic Policy, Dr. Muhammad Abdullahi, said the comprehensive review of the manual was initiated by the Governor at the inception of his administration as part of a broader reform agenda aimed at restoring confidence, improving transparency, deepening market liquidity and strengthening the overall functioning of Nigeria’s foreign exchange market.
He added, “From the outset, the Governor recognised the urgent need for a foreign exchange framework that reflects current market realities, aligns with international best practices, reduces operational inefficiencies and supports a more transparent, rules-based and market-oriented system.
“The revised manual is not a stand-alone exercise. It forms part of a deliberate institutional reform effort designed to strengthen the integrity and credibility of Nigeria’s foreign exchange system.”
The DG added that the manual reflected operational realities, addressed practical challenges faced by market participants and aligned with international best practices while preserving market integrity and regulatory discipline.
He said, “We approached this review through a strong ease-of-doing-business lens. Consequently, several bottlenecks, ambiguities and duplicative requirements identified by stakeholders have now been addressed.
“Our goal is to reduce transaction friction, improve processing timelines, deepen market confidence, encourage formal market participation and create a more seamless and efficient experience for legitimate users of Nigeria’s foreign exchange market.”
In his goodwill address, the Chairman of the Body of Banks MDs, and the Chief Executive Officer of the United Bank for Africa, Mr. Oliver Alawuba, pledged the cooperation of the banks to ensuring a successful implementation of the manual.
He admitted that the CBN consulted widely before concluding the document and that banks were ready to play by the rules of the new provisions.