The Central Bank of Nigeria has introduced tougher foreign exchange rules to improve transparency and strengthen market discipline nationwide.
Forex Compliance Crackdown
Under the revised Foreign Exchange Manual, banks that process transactions with weak documentation will face heavy sanctions.
Consequently, the apex bank imposed a ₦100 million penalty alongside ₦10 million for every affected transaction.
Stricter Banking Penalties
The CBN released the updated framework in May 2026 and strengthened compliance across spot trades, swaps, forward contracts, imports and exports.
Furthermore, banks must now verify customer documents before releasing foreign currency for any transaction.
The apex bank also retained strict import documentation requirements.
Importers must submit Form M registration, invoices, certificates of origin, packing lists and shipping documents.
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In addition, they must provide Exchange Control Documents within 90 days after negotiating overseas shipping papers.
CBN Market Reforms
Meanwhile, repeated violations will attract tougher punishments across the banking sector.
First-time offenders will face 90-day restrictions from foreign exchange transactions.
Similarly, second and third violations will attract 180-day and 360-day suspensions respectively.
However, a fourth offence could trigger a complete market ban.
The regulator also expanded penalties for late or missing financial returns and excessive foreign currency exposure limits.
According to the CBN, the reforms aim to strengthen investor confidence, improve accountability and attract sustainable foreign investment into Nigeria’s foreign exchange market.
