The Central Bank of Nigeria (CBN) has released new foreign exchange guidelines that set cash travel limits for individuals leaving or entering the country. Under the revised rules, Nigerian residents and visitors can now take up to $50,000 out of Nigeria, subject to specific declaration requirements.
Key Changes in Cash Travel Limits
According to the new framework, individuals can leave Nigeria with up to $10,000 or its equivalent in other foreign currencies without making any declaration. However, amounts exceeding $10,000 and up to $50,000 must be declared to the relevant authorities at the point of departure. For amounts above $50,000, travellers must provide evidence that the funds were obtained through an authorised dealer, such as a licensed bank.
Inbound Cash and Transfer Rules
For incoming travellers, foreign currency not exceeding $10,000 can be brought into Nigeria without declaration. Any amount above that threshold must be declared upon arrival. The CBN also clarified that foreign currency previously brought into the country, minus expenses already incurred, may be taken out again, excluding funds held for ship or aircraft operations.
All inbound foreign exchange transfers to Nigeria must now be paid to beneficiaries through bank accounts, either in naira or any other currency approved by the CBN. For international money transfer transactions, cash withdrawals are capped at the naira equivalent of $200. Any amount exceeding that limit must be credited directly into a bank account.
Requirements for IMTOs and Authorised Dealers
International Money Transfer Operators (IMTOs) are required to maintain naira settlement accounts with authorised dealer banks in Nigeria and ensure all transactions are processed through those designated accounts. Authorised dealers and buyers are permitted to purchase foreign currency from visitors entering Nigeria. When departing, such visitors may convert any unused naira back into foreign currency, provided they can show evidence of the original currency exchange transaction. The amount eligible for reconversion will be limited to the value initially exchanged through an authorised dealer or buyer, depending on the channel used.
These guidelines aim to streamline foreign exchange operations and enhance transparency in cross-border transactions. The CBN continues to implement measures to stabilise the forex market and promote financial inclusion.
