CBN fines banks, forex dealers N100 million over incomplete documentation

The Central Bank of Nigeria, CBN, has slapped a N100 million fine on commercial banks, Other Financial Institutions, OFIs, and unauthorised forex dealers who fail to provide proper supporting documents for foreign exchange transactions.

Governor Yemi Cardoso said the reforms are part of the bank’s commitment to strengthening macroeconomic stability and modernising forex administration. He added that the review was driven by changes in global economic conditions, domestic structural adjustments, and ongoing reforms in Nigeria’s forex market.

Sources at the apex bank said the move targets forex rackets among some commercial banks that deliberately skip documentation to evade regulatory accountability.

The new policy is contained in the fourth edition of the Foreign Exchange Manual, released by the CBN’s Trade and Exchange Department in May 2026. Authorised dealers found guilty of completing forex transactions with insufficient documentation will pay a N100 million fine, plus an additional N10 million for each affected transaction where rules were broken.

The revised manual aims to strengthen compliance, improve transparency, enhance market integrity, and align Nigeria’s forex administration with current economic realities and international best practices. It marks the first major update to the manual since 2017.

Stiffer penalties for NOP breaches

Under the new rules, banks that exceed approved Net Open Position limits face graduated sanctions. A first violation attracts a written warning. A second offence leads to a 10-day suspension from the forex market. A third offence results in a 90-day suspension.

Tighter reporting deadlines

The CBN has tightened reporting obligations for authorised dealers. Banks must now submit daily forex transaction returns by 10 a.m. the following day. Monthly returns must be filed within five working days after the end of each month. Late submission attracts a N500,000 penalty. Failure to submit returns carries a minimum fine of N5 million, plus an additional N500,000 for each day the violation continues.

Diversion of forex allocations

The CBN warned against diverting forex allocations from approved purposes without prior regulatory approval. Offenders could face financial sanctions, suspension of authorised dealer licences for at least six months, or outright revocation, depending on the severity of the infraction.

New rules for importers and exporters

Importers must submit Exchange Control Documents within 90 days of negotiating shipping documents with overseas correspondent banks. First-time offenders face a 90-day restriction on access to forex. Repeated violations lead to a permanent ban. Banks that fail to report importer defaults will face penalties starting with a warning and escalating to N10 million per transaction.

For exporters, non-oil export proceeds must be repatriated and credited to domiciliary accounts within 180 days of shipment. Oil and gas export proceeds must be repatriated within 90 days. Exporters who fail to comply will pay a penalty equal to one per cent of the naira value of outstanding export proceeds. Banks that do not ensure customer compliance face a fine of 0.5 per cent of the outstanding amount.

Market efficiency measures

The revised manual also introduces measures to improve forex market efficiency. The allowable advance payment for imports has been increased from 15 per cent to 30 per cent. Import shortfalls or excesses of up to plus or minus 10 per cent of the Cost and Freight value on Form M are now permitted.

The CBN removed processing fees for Form NXP used for export declarations. It also eliminated the mandatory requirement for Form A in remittances funded through personal domiciliary accounts, subject to bank verification.

Other provisions cover service exports, technology-related remittances, transactions under the Pan-African Payment and Settlement System, non-resident investment accounts, and tuition payments of up to 25,000 dollars per semester for students studying abroad.