…Says Nigeria’s daily FX turnover rose from $100m to $600m
From Adanna Nnamani, Abuja
The Central Bank of Nigeria (CBN) has unveiled the fourth edition of its Foreign Exchange Manual as part of efforts to deepen liquidity, improve transparency and strengthen confidence in the country’s foreign exchange market.
Speaking at the launch of the revised manual in Abuja, on Friday, the Governor of the CBN, Mr Olayemi Cardoso, said the document which takes effect from June 1, 2026, was developed after extensive consultations with banks, exporters, importers, corporates, regulators and development partners.
He said the new framework reflects the apex bank’s commitment to modernising the country’s foreign exchange administration in line with international best practices.
Cardoso described the foreign exchange market as a critical pillar of any open economy, noting that effective governance of the sector is essential for sustaining macroeconomic stability and investor confidence.
“Foreign exchange is more than a financial instrument. It anchors price stability, facilitates the flow of goods and capital, and shapes investor sentiment,” he said.
The CBN governor stressed that the revised manual became necessary due to changing global economic realities, domestic reforms and the need for a more coherent and forward-looking regulatory framework.
According to him, the last edition of the FX manual was issued in 2018, making the latest review both timely and necessary.
Cardoso disclosed that Nigeria’s foreign exchange market has witnessed significant improvement in liquidity since the current administration began reforms in the sector, adding that daily turnover in the FX market increased from an average of about $100 million in the early days of the administration to between $400 million and $600 million daily.
The governor added that the market had also recorded transactions of up to $1 billion per day on several occasions in recent months.
“We have gone from a situation where it was more or less a one-way market, where the central bank came in, intervened and went away, to a much more dynamic market,” he stated.
The apex bank boss noted that the reforms were gradually restoring confidence among investors and market participants, encouraging freer entry and exit in the market without unnecessary restrictions.
He also maintained that the nation’s foreign reserves should not be used as the primary tool for funding the foreign exchange market, stating, “Reserves are reserves. They are not what you look to fund a market.”
The CBN governor assured stakeholders that the revised manual would be distributed free of charge to authorised dealers while the bank strengthens monitoring mechanisms to ensure compliance, fairness and accountability across the foreign exchange market.
In his remarks, the Deputy Governor for Economic Policy, Mr Muhammad Abdullahi, said the review formed part of broader reforms initiated by Cardoso to restore confidence, improve transparency and deepen liquidity in the foreign exchange market.
Abdullahi explained that the revised manual introduces several changes aimed at improving ease of doing business and reducing transaction bottlenecks.
Among the notable changes, he noted, are provisions allowing unfettered access to export proceeds, introduction of non-resident investment accounts and operational guidelines for Pan-African Payment and Settlement System (PAPSS) transactions to support regional trade.
Abdullahi added that the manual also contains new provisions on service exports, revised documentation requirements and updated operational procedures designed to align Nigeria’s FX market with global standards.
He said the apex bank deliberately adopted an ease of doing business approach during the review process to eliminate inefficiencies and ambiguities identified by stakeholders.
“The revised manual is not a stand-alone exercise but part of a broader institutional reform effort designed to strengthen the integrity, credibility and effectiveness of Nigeria’s foreign exchange system,” he said.
Also speaking at the event, Managing Director and Chief Executive Officer of Access Bank, Roosevelt Ogbonna, commended the CBN for laying what he described as a stronger foundation for a more stable and market-driven foreign exchange system.
Ogbonna recalled that the CBN had pursued a policy around 2010 aimed at driving naira competitiveness and positioning the local currency to play a bigger role in international trade.
According to him, the initiative generated excitement at the time but suffered several setbacks that weakened the naira and tightened financial market conditions.
“What the Central Bank has done differently is to build a strong foundation first, build a market system and get to the core of the product that works and what creates credibility in the international market,” he said.
He said that the revised FX manual reflects a system that is more aligned with present economic realities and global market expectations.
Ogbonna also highlighted the timeline of revisions to the FX manual, noting that the second and third editions were separated by a 12-year gap, while the latest review came eight years after the previous edition released in 2018.
On his part, Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, said the revised manual would improve operational efficiency, promote transparency and strengthen investor confidence in the Nigerian economy.
Represented by Permanent Secretary Special Duties, Mr Muhammed Danjuma, the Minister emphasised that the success of the initiative depends not only on the quality of the document itself, but on the commitment of all stakeholders to its effective implementation.
“I therefore urge financial institutions, regulators, businesses, and practitioners to embrace the provision of the manual and work collaboratively towards achieving a more transparent, stable, and resilient forex market.” He stated.
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