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ARTICLE · 15 OCTOBER 2024

Regulatory Update: The Nigeria Foreign Exchange (FX) Code

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In light of ongoing challenges in the Nigerian foreign exchange market, including recent distortions driven by speculators and illicit traders, the need for a robust regulatory...

NigeriaFinance and Banking
Seun Timi-Koleolu
Seun Timi-Koleolu
Qasim Ogunjimi
Qasim Ogunjimi

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Introduction

In light of ongoing challenges in the Nigerian foreign exchange market, including recent distortions driven by speculators and illicit traders, the need for a robust regulatory framework has become increasingly urgent. In view of this, the Central Bank of Nigeria (CBN) has introduced the Nigeria Foreign Exchange Code (the "FX Code"), effective October 14, 2024, to enhance the integrity and operational efficiency of the Nigerian Foreign Exchange Market (NFEM). This comprehensive framework establishes robust guidelines for licensed banks and financial institutions, including Bureau de Change (BDC) operators, International Money Transfer Operators (IMTOs), FinTechs and others organisations engaged in wholesale foreign exchange transactions ("Market Participants").

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