The Central Bank of Nigeria (CBN) has published the fourth edition of its Foreign Exchange Manual, introducing updated regulations and compliance measures designed to enhance transparency, strengthen regulatory oversight, and improve efficiency in Nigeria's foreign exchange market.
Issued by the apex bank's Trade and Exchange Department, the 2026 manual outlines procedures and documentation requirements for foreign exchange transactions while reinforcing safeguards for the country's external reserves.
Key Changes in the 2026 Forex Manual
1. $10,000 Cash Declaration Threshold Retained
The CBN has kept the existing limit for carrying foreign currency across Nigeria's borders. Travelers can bring in or take out up to $10,000 (or equivalent in other currencies) without making a declaration. Any amount exceeding that threshold must be declared at entry using Form TM or at exit through Form TE. Outbound travelers may carry up to $50,000 if declared, and amounts above $50,000 require evidence of sourcing through an authorized dealer bank.
2. Hotels Face Foreign Currency Collection Cap
Hotels licensed as authorized 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 may also convert unused naira back into foreign currency before departure, provided they can prove the original exchange transaction.
3. Majority of PTA Payments to Go Digital
Under the revised framework, authorized dealer banks must disburse at least 75% of Personal Travel Allowance (PTA) through cards or other approved digital channels, with only 25% paid in cash. The PTA limit remains $4,000 per quarter for eligible travelers 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. Nursery, primary, secondary, and A-level programs are excluded from accessing 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 (IMTOs) will primarily be paid through bank accounts. For over-the-counter transactions, beneficiaries can only receive cash up 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 may 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 conducted within the country. Goods and services exchanged between Nigerian entities are expected to 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 transaction value. Companies may face penalties of up to 10 times the transaction amount and could also face winding-up proceedings. Authorized 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, with the latter attracting a 1% penalty on outstanding funds.
CBN Launches Payment System Vision 2028
Meanwhile, the CBN launched Payment System Vision 2028 to increase financial inclusion to 95% of Nigerian adults by 2028. The initiative aims to bring about 50 million more Nigerians into the formal financial system through improved digital payment services and infrastructure. The CBN also plans to deploy over 10 million digital payment points nationwide and strengthen fraud prevention using artificial intelligence.
