The Central Bank of Nigeria has launched the Nigerian Foreign Exchange Code, introducing a conduct and controls framework for Nigeria’s wholesale foreign exchange market and setting out compliance reporting expectations backed by enforcement powers. The Code, which draws on the Global FX Code, applies to “Market Participants” including authorised dealers licensed under the Central Bank of Nigeria Act 2007 and the Bank and Other Financial Institutions Act 2020, as well as other approved entities active in wholesale foreign exchange business. It is structured around six leading principles covering ethics, governance, execution, information sharing, risk management and compliance, and confirmation and settlement processes, and includes expectations to avoid illegal financial transfers and maintain appropriate anti-money laundering policies. Market participants were required to submit a self-assessment of compliance by January 31, 2025, then provide a board-approved compliance implementation plan, and submit quarterly compliance reports to the Financial Markets Department within 14 days after each calendar quarter, with the first report due by March 31, 2025; non-compliance may trigger administrative action including monetary penalties. In related measures highlighted in the same CBNUPDATE edition, the central bank suspended extensions on export proceeds repatriation from January 8, 2025, reaffirming repatriation timelines of 180 days for non-oil exports and 90 days for oil and gas exports from the bill of lading date. It also fined nine Deposit Money Banks NGN 150 million each after ATM spot checks over cash-dispensation failures during the festive period, waived the 2025 annual Bureau De Change licence renewal fee (with refunds available for firms that already paid), and introduced Non-Resident Nigerian Ordinary and Investment Accounts effective January 1, 2025, to support remittances, foreign and local currency fund management, and investment in Nigerian assets subject to Know-Your-Customer requirements.
Central Bank of Nigeria 2025-02-11
Central Bank of Nigeria launches Nigerian Foreign Exchange Code with self-assessment and quarterly compliance reporting requirements
The Central Bank of Nigeria introduced the Nigerian Foreign Exchange Code, establishing conduct and controls for the wholesale foreign exchange market, with compliance reporting backed by enforcement powers. Based on the Global FX Code, it applies to authorised dealers and approved entities, focusing on ethics, governance, and risk management. Additionally, the central bank suspended extensions on export proceeds repatriation timelines and fined banks for ATM cash-dispensation failures.