CBN Releases Updated Forex Manual: 7 Key Changes You Need to Know

The Central Bank of Nigeria has published the fourth edition of its Foreign Exchange Manual. The new document introduces updated rules and compliance measures aimed at improving transparency, strengthening oversight, and boosting efficiency in the country's foreign exchange market.

Issued by the CBN's Trade and Exchange Department, the 2026 manual outlines procedures and documentation requirements for forex transactions. It also reinforces safeguards for Nigeria's external reserves. Below are seven major takeaways from the revised guidelines.

1. $10,000 Cash Declaration Threshold Remains

The CBN kept the existing limit for carrying foreign currency across Nigeria's borders. Travellers can bring in or take out up to $10,000 or its equivalent without making a declaration. Any amount above that must be declared at entry using Form TM or at exit using Form TE. Outbound travellers can carry up to $50,000, provided the funds are declared. Amounts above $50,000 require evidence showing they were sourced through an authorised dealer bank.

2. Hotels Face Foreign Currency Collection Cap

Hotels licensed as authorised buyers can still accept foreign currency from international guests for accommodation and related services. However, the total amount a hotel may receive from a guest during a single stay is limited to $10,000 or its equivalent. Such funds must be deposited into the hotel's domiciliary account. Foreign visitors can also convert unused naira back into foreign currency before departure, provided they prove the original exchange transaction.

3. Majority of PTA Payments to Go Digital

Authorised dealer banks must now disburse at least 75 per cent of Personal Travel Allowance through cards or other approved digital channels. Only 25 per cent may be paid in cash. The PTA limit remains $4,000 per quarter for eligible travellers aged 18 and above. For Nigerian students abroad, tuition payments are capped at $25,000 per semester and must be remitted directly to educational institutions. Students living off-campus can access up to $5,000 per quarter as maintenance allowance. The manual excludes nursery, primary, secondary and A-level programmes from access to official foreign exchange.

4. New Rules for International Money Transfers

The CBN maintained its policy that proceeds from inbound transfers processed by International Money Transfer Operators will primarily be paid through bank accounts. For over-the-counter transactions, beneficiaries can only receive cash equivalent to a maximum of $200. Any amount above that must be credited directly into a bank account. Inbound transfers will be paid in naira or any other currency approved by the CBN.

5. Domiciliary Accounts Get More Flexibility

Individuals opening or funding domiciliary accounts are not required to disclose the source of their foreign currency deposits under the new guidelines. Account holders can also initiate telegraphic transfers of up to $10,000 daily. The CBN maintained stricter controls on export proceeds accounts. While exporters may use the funds for approved transactions, cash withdrawals from such accounts remain prohibited.

6. Naira Still Mandatory for Local Transactions

The apex bank reaffirmed that the naira remains Nigeria's legal tender and must be used for pricing and settling transactions within the country. Goods and services exchanged between Nigerian entities must be denominated in naira. Exceptions apply to certain government agencies and licensed operators in sectors such as oil and gas, aviation, maritime services and free trade zones.

7. Tougher Penalties for Offenders

The manual imposes severe sanctions on individuals, businesses and financial institutions that breach foreign exchange regulations. Individuals found guilty of forging or falsifying forex documents risk up to five years imprisonment or a fine worth five times the value of the transaction. Companies may face penalties of up to 10 times the transaction amount and could face winding-up proceedings. Authorised dealers that process transactions without proper documentation face a N100 million fine, plus an additional N10 million for every affected transaction. The CBN also introduced penalties for late regulatory filings, non-compliance with exchange control documentation requirements, and failure by exporters to repatriate export proceeds. The latter attracts a one per cent penalty on outstanding funds.