The Central Bank of Nigeria (CBN) has introduced major reforms to its foreign exchange regulations with the launch of the Foreign Exchange Manual 2026, designed to improve liquidity, simplify processes, and strengthen market transparency.
The updated guidelines, which will take effect on June 1, 2026, offer individuals significantly more flexibility in using their foreign currency holdings while tightening controls on export-related transactions.
Greater Freedom for Individuals
Under the new rules, Nigerians can now freely utilise funds held in ordinary domiciliary accounts without seeking prior approval from the CBN. The requirement for Form A has been eliminated for remittances made directly from personal domiciliary accounts, reducing bureaucracy and making transactions faster.
Account holders are also allowed to make telegraphic transfers of up to $10,000 per day, as long as the purpose of the transfer is clearly stated and recorded in the Foreign Exchange Management System (FEMS).
Tighter Rules for Exporters
Exporters will now face stricter compliance standards. All transactions from export proceeds domiciliary accounts must be supported by appropriate documentation. Cash withdrawals from these accounts have been completely banned.
The CBN has also enhanced anti-money laundering and counter-terrorism financing measures. Transfers of export proceeds to third parties must clearly indicate their purpose, and banks are required to report them using designated FEMS codes.
However, the new framework offers exporters some relief. They can now transfer funds from export proceeds accounts in one bank to ordinary domiciliary accounts in another bank for eligible transactions. Exporters are also free to sell their foreign exchange earnings to any authorised dealer bank in the Nigerian Foreign Exchange Market, a move expected to increase liquidity and improve price discovery.
Extractive Industries Unaffected
Firms operating in Nigeria’s extractive sector (mainly oil and gas) will continue to repatriate up to 100% of their export proceeds through authorised banks, provided they meet documentation and reporting requirements.
Balanced Regulatory Approach
The 2026 FX Manual reflects the CBN’s strategy of balancing liberalisation for personal use with stronger oversight of export earnings to prevent leakages and ensure better tracking of foreign currency flows.
In a related development, the CBN has partially relaxed its cashless policy on Personal Travel Allowance (PTA) and Business Travel Allowance (BTA). Travellers can now receive 25% of their allowance in physical cash dollars, while the remaining 75% will be disbursed electronically via debit or credit cards.
