Proposed Changes To The Foreign Exchange Regime In Nigeria

A Foreign Exchange (Control and Monitoring) Bill 2016 has recently passed second reading at the National Assembly. The Bill seeks to repeal the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act ("FEMMPA") 1995, the principal law regulating Nigeria's foreign exchange regime.

The key changes include:

1. granting of more powers to the CBN to regulate the forex market without requiring any approval from the finance minister;
2. regulation of foreign currency transactions performed in a foreign country which will have effect in Nigeria;
3. requirement to obtain certificate of capital importation within 48 hours (currently 24 hours); and
4. prohibition of payments in foreign currency for goods and services in Nigeria.