CBN releases new FX manual with $10,000 cash threshold, PTA digital rule, and stiff penalties
By Aboki Forex —
The Central Bank of Nigeria (CBN) on Tuesday released the fourth edition of its foreign exchange manual. The 2026 manual, issued by the trade and exchange department, outlines procedures, documentation requirements, and compliance rules for forex transactions in Nigeria. The apex bank said the guidelines aim to promote transparency, safeguard external reserves, strengthen compliance, and improve efficiency in the forex market. Here are seven key highlights.
$10,000 threshold for cash declaration
The CBN retained the existing threshold for cross-border movement of foreign currency. Under the rules, individuals may import or export foreign currency in cash or negotiable instruments up to $10,000 or its equivalent without declaration. “Foreign currency, either in cash or any other credit instrument, not exceeding US$10,000.00 or its equivalent in other foreign currencies, may be imported into Nigeria by a person without declaration,” CBN said. “However, any amount above US$10,000.00 or its equivalent in other foreign currencies shall be declared at the point of entry using Form TM or at the point of exit using Form TE.” Outbound travellers may carry up to $50,000 subject to declaration requirements. Amounts above $50,000 require verifiable evidence showing the funds came from an authorised dealer bank.
Hotels capped at $10,000 per guest stay
Hotels licensed by the CBN as authorised buyers may accept foreign currency from international guests for bill settlement. The amount purchased or received from a guest during a stay is capped at $10,000 or its equivalent. The manual requires all foreign currency received under this arrangement to be deposited into the hotel’s domiciliary account. International guests may also reconvert unused naira into foreign currency upon departure, provided they show evidence of the initial conversion.
PTA to be disbursed through digital channels
The CBN revised the disbursement framework for personal travel allowance (PTA). The maximum PTA remains $4,000 per quarter for eligible travellers aged 18 years and above. But authorised dealer banks must now disburse at least 75 percent of the allowance through cards or other approved digital channels. “The disbursement of PTA shall be a minimum of 75% via cards and other approved digital channels, while the remaining 25% shall be paid in cash,” the report added. For students abroad, tuition remittances for undergraduate and postgraduate programmes are capped at $25,000 per semester and must be paid directly to the institution. Maintenance allowance is capped at $5,000 per quarter for students living off campus. The manual also excludes nursery, primary, secondary and A-level programmes from eligibility for official forex.
International money transfers to be paid in naira
Beneficiaries of inbound transfers through international money transfer operators (IMTOs) will continue to receive proceeds in naira. For over-the-counter transactions, the maximum cash payout permitted is the naira equivalent of $200. Any amount above that must be credited directly into the beneficiary’s bank account. “All inbound FX transfers to Nigeria shall be disbursed to beneficiaries’ bank accounts in Naira or any currency as may be determined by the CBN from time to time,” CBN said. “Maximum allowable cash withdrawal for inbound money transfer shall not be more than the Naira equivalent of USD200.00, and any amount in excess of USD200 shall be paid through an account.”
Domiciliary account holders not required to disclose source of funds
The manual states that individuals opening domiciliary accounts or making deposits into such accounts are not required to disclose the source of funds. Account holders may also initiate telegraphic transfers of up to $10,000 per day. However, different rules apply to export proceeds accounts. While exporters may freely use funds for eligible transactions, cash withdrawals from export proceeds accounts are prohibited.
Domestic transactions must be denominated in naira
The CBN reiterated that the naira remains the legal tender for transactions conducted within Nigeria. Goods and services exchanged between Nigerian entities must be priced and settled in naira. The manual provides exemptions for certain government agencies and licensed operators in sectors including oil and gas, maritime, aviation, and businesses operating within free trade zones.
Heavy penalties for violations
The manual prescribes sanctions for individuals, companies and financial institutions that violate forex regulations. Individuals found guilty of falsifying or forging foreign exchange documents face up to five years’ imprisonment or a fine equivalent to five times the value of the transaction. Corporate entities face fines of up to 10 times the amount involved and may be subject to winding-up proceedings. Authorised dealers that process transactions without adequate documentation face a N100 million fine, plus an additional N10 million penalty for each affected transaction. Late submission of regulatory returns attracts a N500,000 penalty on the first day of default. Continued non-compliance may result in a N5 million fine and additional daily penalties. Importers who fail to submit exchange control documents within the prescribed period may face temporary or permanent restrictions from accessing the forex market. The CBN also imposed a 1 percent penalty on exporters who fail to repatriate export proceeds within stipulated timelines.