For years, Nigeria’s foreign exchange market has been shaped as much by uncertainty as by supply and demand. Importers complained about delays and documentation bottlenecks. Exporters often questioned whether existing procedures encouraged them to repatriate earnings through official channels.
Investors worried about policy reversals and access to foreign exchange. The banks found themselves navigating changing regulations, multiple directives, and periods of market stress. Against that backdrop, the launch of the fourth edition of the CBN’s Foreign Exchange Manual represents more than a regulatory update.
It is the latest stage in a broader effort by monetary authorities to build a foreign exchange market governed less by discretion and more by clear rules, transparency and accountability. The revised manual, which became effective on 1 June, comes after nearly eight years since the previous edition was issued in 2018.
During that period, Nigeria’s economy experienced a global pandemic, oil price volatility, foreign exchange shortages, exchange rate reforms and a shift towards a more market-driven currency regime. Those developments exposed weaknesses in the existing framework and increased calls for clearer operating standards.
Speaking at the launch, CBN Governor, Mr Olayemi Cardoso, argued that the changes were necessary to align foreign exchange administration with present realities. “Foreign exchange is more than a financial instrument; it is a critical enabler in any open economy.
It anchors price stability, facilitates the flow of goods and capital, and shapes investor sentiment,” Cardoso said. He noted that both global and domestic economic conditions had changed considerably over the past decade, requiring regulators to update the framework guiding market operations.
“Ongoing foreign exchange market reforms have made it necessary to revise the Manual to provide a more coherent and forward-looking regulatory framework. The last edition was issued in 2018, making this review both timely and necessary,” he added. Yet beyond the ceremonial launch, the revised manual raises a broader question.
Can clearer rules and stronger compliance requirements help deliver the stable, transparent and liquid foreign exchange markets that policymakers have promised for years? Rules driving confidence The CBN’s current reform programme has largely focused on restoring confidence in the foreign exchange market.
Since assuming office, Cardoso has repeatedly argued that transparency, market discipline and credible price discovery are prerequisites for attracting investments and improving liquidity. The revised manual appears designed to provide the operational framework for those objectives.
His remarks suggest that the manual should not be viewed in isolation. Rather, it follows a series of reforms introduced over the past two years, including the adoption of the Electronic Foreign Exchange Matching System, the Nigerian Foreign Exchange Code and efforts to unify exchange rate determination within the official market.