CBN Tightens Forex Rules, Sanctions Banks Over Documentation Breaches

The Central Bank of Nigeria (CBN) has introduced a stringent ₦100 million penalty for banks and authorised dealers involved in foreign exchange transactions without proper documentation.

According to Ireporter Online, the directive is contained in the offences and sanctions section of the fourth edition of the CBN Foreign Exchange Manual, released in May 2026 by the apex bank’s Trade and Exchange Department. The updated framework marks the first major revision since 2017 and is designed to strengthen compliance, transparency, and accountability in Nigeria’s foreign exchange market.

Under the new rules, authorised dealers found guilty of processing FX transactions with insufficient documentation will pay a ₦100 million fine in addition to ₦10 million for each affected transaction. The CBN said the measure is part of broader efforts to ensure foreign exchange is directed toward productive sectors of the economy and to curb abuses within the system.

The revised manual also introduced graduated sanctions for banks that exceed approved Net Open Position limits. A first violation attracts a warning letter, a second results in a 10-day suspension from the FX market, while a third breach leads to a 90-day suspension.

In addition, banks are now required to submit daily foreign exchange returns by 10 a.m. the following day, with monthly reports due within five working days after each month ends. Failure to comply attracts penalties, including ₦500,000 for late submissions and at least ₦5 million plus ₦500,000 daily for non-rendition.

The CBN also warned against unauthorized reallocation of FX funds, noting that offenders risk heavy fines, suspension of dealership licences for up to six months, or outright revocation depending on severity.

Importers and exporters were also affected by the new guidelines. Importers must now submit Exchange Control Documents within 90 days, while export proceeds must be repatriated within 90 days for oil and gas and 180 days for non-oil exports. Failure to comply attracts financial penalties, including a 1% charge on outstanding export proceeds.

CBN Governor Olayemi Cardoso said the reforms reflect the bank’s commitment to macroeconomic stability and a modernised FX framework, while Deputy Governor Dr. Muhammad Abdullahi noted that the changes are aimed at improving efficiency, restoring confidence, and aligning Nigeria’s FX system with global best practices.

The apex bank added that the revised manual followed extensive consultations with stakeholders and is expected to reduce bottlenecks, improve transparency, and strengthen investor confidence in the foreign exchange market.