For years, Nigeria’s foreign exchange market has been shaped as much by uncertainty as by supply and demand. Importers complained about delays and documentation bottlenecks. Exporters often questioned whether existing procedures encouraged them to repatriate earnings through official channels. Investors worried about policy reversals and access to foreign exchange. The banks found themselves navigating changing regulations, multiple directives, and periods of market stress.

Against that backdrop, the launch of the fourth edition of the CBN’s Foreign Exchange Manual represents more than a regulatory update. It is the latest stage in a broader effort by monetary authorities to build a foreign exchange market governed less by discretion and more by clear rules, transparency and accountability.

The revised manual, which became effective on 1 June, comes after nearly eight years since the previous edition was issued in 2018. During that period, Nigeria’s economy experienced a global pandemic, oil price volatility, foreign exchange shortages, exchange rate reforms and a shift towards a more market-driven currency regime. Those developments exposed weaknesses in the existing framework and increased calls for clearer operating standards.

Speaking at the launch, CBN Governor, Mr Olayemi Cardoso, argued that the changes were necessary to align foreign exchange administration with present realities.

“Foreign exchange is more than a financial instrument; it is a critical enabler in any open economy. It anchors price stability, facilitates the flow of goods and capital, and shapes investor sentiment,” Cardoso said.

He noted that both global and domestic economic conditions had changed considerably over the past decade, requiring regulators to update the framework guiding market operations.

“Ongoing foreign exchange market reforms have made it necessary to revise the Manual to provide a more coherent and forward-looking regulatory framework. The last edition was issued in 2018, making this review both timely and necessary,” he added.

Yet beyond the ceremonial launch, the revised manual raises a broader question. Can clearer rules and stronger compliance requirements help deliver the stable, transparent and liquid foreign exchange markets that policymakers have promised for years?

Rules driving confidence

The CBN’s current reform programme has largely focused on restoring confidence in the foreign exchange market. Since assuming office, Cardoso has repeatedly argued that transparency, market discipline and credible price discovery are prerequisites for attracting investments and improving liquidity.

The revised manual appears designed to provide the operational framework for those objectives.

According to the Deputy Governor, Economic Policy Directorate, Dr Muhammad Abdullahi, the review formed part of a wider strategy initiated at the beginning of the current administration of the apex bank.

“It is important to note that the reform and comprehensive review of Nigeria’s Foreign Exchange Manual was initiated by the CBN Governor, Mr Olayemi Cardoso, from the very beginning of his administration as part of a broader agenda to restore confidence, improve transparency, deepen liquidity, and strengthen the overall functioning of Nigeria’s foreign exchange market,” Abdullahi said.

His remarks suggest that the manual should not be viewed in isolation. Rather, it follows a series of reforms introduced over the past two years, including the adoption of the Electronic Foreign Exchange Matching System, the Nigerian Foreign Exchange Code and efforts to unify exchange rate determination within the official market.

Those reforms sought to address longstanding criticisms that Nigeria’s foreign exchange market was fragmented, opaque and vulnerable to discretionary practices.

“A modern FX market cannot thrive in an environment characterised by opacity, fragmentation, delays, uncertainty, or excessive administrative bottlenecks,” Abdullahi said. “It requires trust, transparency, liquidity, efficient market infrastructure, prudent regulation, and responsible market conduct.”

The deputy governor argued that the revised manual would help create those conditions by standardising procedures, clarifying documentation requirements and establishing clearer responsibilities for authorised dealers and market participants.

The objective is not simply regulatory compliance. It is to reduce uncertainty.

Foreign exchange markets function most efficiently when participants understand the rules and have confidence that those rules will be applied consistently. Where ambiguity exists, businesses tend to delay investment decisions, traders demand higher risk premiums, and investors become cautious.

For Nigeria, where foreign exchange remains central to trade, manufacturing, education, healthcare and capital flows, such uncertainty carries significant economic costs.

This explains why the CBN repeatedly emphasised transparency and consistency throughout the launch event.

Cardoso also described the revised manual as part of efforts to strengthen “clarity, consistency, and market efficiency” while promising stronger monitoring mechanisms to ensure accountability across the system.

Whether those goals are achieved will ultimately depend on implementation. Regulations alone rarely change markets. Consistent enforcement does.

What has changed?

The practical significance of the revised manual lies in its detailed operational provisions.

While many of the changes may appear technical, they affect a wide range of economic activities, from import transactions and export proceeds to travel allowances and tuition payments abroad.

Among the notable revisions is the harmonisation of Personal Travel Allowance and Business Travel Allowance disbursements with the revised Bureau de Change guidelines. Under the new arrangement, 75 per cent of PTA and BTA transactions will be processed electronically, while only 25 per cent may be disbursed in cash.

The manual also increases allowable advance payments for imports from 15 per cent to 30 per cent. For businesses that depend on imported inputs, this could improve transaction flexibility and reduce delays associated with supplier payment arrangements.

Another important provision concerns export transactions. Processing of Form NXP, the principal export documentation platform, will now be free of charge. The manual also introduces specific provisions governing service exports, technology-sector remittances and Pan-African Payment and Settlement System transactions.

These additions reflect changes in the structure of Nigeria’s economy.

A growing share of foreign exchange earnings now originates from services, technology exports and regional trade rather than traditional merchandise exports alone. Regulatory frameworks that fail to recognise those realities risk becoming outdated.

The revised manual also introduces Non-Resident Investment Accounts and Non-Resident Ordinary Accounts, while allowing foreign companies operating in the extractive sector to repatriate 100 per cent of export proceeds.

Perhaps more significant for individual account holders is the removal of the mandatory Form A requirement for remittances using ordinary domiciliary accounts.

Although authorised dealer banks will still be required to verify the legitimacy of transactions, the change eliminates an administrative layer that many market participants considered cumbersome.

The manual further provides for tuition fee payments of up to $25,000 per semester for undergraduate and postgraduate studies abroad and allows transfers between export proceeds domiciliary accounts and ordinary domiciliary accounts under specified conditions.

Collectively, these provisions indicate a regulatory approach focused on reducing bottlenecks while maintaining oversight.

“Our goal is to reduce transaction frictions, improve processing timelines, deepen market confidence, encourage formal market participation, and create a more seamless and efficient experience for legitimate users of Nigeria’s foreign exchange market,” Abdullahi said.

For businesses and investors, the real measure of success will be whether these changes translate into faster processing, reduced compliance costs and more predictable access to foreign exchange.

Banks back discipline

Among market participants, commercial banks are likely to play the most critical role in implementing the revised framework.

As intermediaries between customers and the foreign exchange market, banks will be responsible for applying documentation standards, processing transactions and ensuring compliance with the new requirements.

It was therefore notable that bank chief executives used the launch event to publicly endorse the reforms.

Speaking on behalf of the Body of Banks’ Chief Executive Officers, the Group Managing Director of United Bank for Africa, Mr Oliver Alawuba, described the revised manual as a continuation of the CBN’s recent market reforms.

“Coming after the introduction of the Electronic Foreign Exchange Matching System and the Nigerian Foreign Exchange Code, this revised manual reinforces a clear policy direction of the Central Bank of Nigeria, a policy direction that anchors on transparency, ethical conduct, credible foreign exchange discovery, stronger documentation, improved oversight, and greater confidence,” Alawuba said.

He argued that reforms introduced over recent years had altered perceptions within the market.

“One of the things I always ask anytime I ask questions about Nigeria is that two years ago or three years ago, as a banker, if you meet your customer, they will ask you, ‘Do you have foreign exchange for us?’ But today, when you meet your customer, you will be the one asking the customer whether they have foreign exchange,” he said.

His remarks reflected the CBN’s broader objective of encouraging foreign exchange inflows into the formal market rather than outside official channels.

However, Alawuba also stressed that reforms could not succeed without discipline, saying, “We can’t do this reform without discipline. So what this manual comes with is the discipline of operators and regulators and all stakeholders as we continue to have a sustainable foreign exchange market.”

A similar theme emerged in remarks by the Group Managing Director of Access Holdings Plc, Mr Roosevelt Ogbonna.

The Nigerian capital market ended the week on a resilient note despite a sharp 38 per cent decline in turnover caused by the two-day Eid al-Adha public holidays. Although trading activity across major asset classes was significantly weakened by the break, the All-Share Index still posted a modest gain as investors conducted system checks ahead of the transition to the T+1 settlement cycle, JIDE AJIA reports

The Nigerian Exchange experienced a sharp contraction in trading activity for the week ended 29 May 2026. This retraction was primarily driven by a compressed trading timeline, as the Federal Government declared Wednesday, 27 May, and Thursday, 28 May, as public holidays to commemorate the Eid al-Adha celebrations.

Despite the lost momentum in total volume, underlying market sentiment remained quietly resilient. The benchmark All-Share Index managed a minor gain, while the markt prepared for a major regulatory milestone.

Volume, value realitie

The footprint of the two-day pause was starkly visible in the week’s trading statistics. Investors exchanged a total turnover of 2.398 billion shares worth N111.480bn in 241,313 deals. This represents a significant 38.12 per cent drop in volume and a 31.08 per cent decline in financial value compared to the preceding week, which had seen 3.875 billion shares valued at N161.757bn change hands across 334,745 deals.

Even with the shortened week and lower participation, buying interest in select heavyweights managed to push the NGX All-Share Index up by 0.27 per cent, closing the week at 250,385.47 points. Concurrently, aggregate market capitalisation closed at a robust N160.509tn.

Sector performance

As is typical on the local bourse, liquidity is concentrated heavily inside institutional banking and financial tickers. The Financial Services Industry anchored the week’s activity chart, clearing 1.656 billion shares valued at N48.229bn across 94,812 deals. This sector single-handedly accounted for 69.07 per cent of the total equity turnover volume and 43.26 per cent of the overall value.

The Services Industry secured a distant second place, recording a turnover of 265.448 million shares worth N4.530bn. The Information and Communications Technology Industry took third place, tracking 101.848 million shares worth N9.163bn.

On an individual stock level, the trio of Fidelity Bank Plc, Access Holdings Plc, and The Initiates Plc dominated order books. Together, they accounted for 903.681 million shares worth N19.227bn, commanding 37.69 per cent of the week’s total traded volume.

Shifting equities

Market breadth leaned negative for the week, signalling selective profit-taking as investors repositioned their portfolios. Overall, 34 equities closed higher, 51 ended lower, and 61 maintained their previous valuations.

International Energy Insurance Plc led the appreciation chart with a stellar 32.55 per cent surge, closing at N4.52 per share. It was followed closely by Sovereign Trust Insurance Plc, which climbed 20.61 per cent to finish at N2.75, and Tantalizers Plc, jumping 18.40 per cent to close at N4.89.

Conversely, Dangote Sugar Refinery Plc took a heavy hit, plunging 18.22 per cent to top the losers’ table at N71.15 per share. The Initiates Plc also pulled back after its high-volume sessions, shedding 15.98 per cent to close at N28.40.

Beyond secondary trading, the final week of May featured highly consequential updates for corporate funding and the fixed-income ecosystem, including Dangote Sugar’s Rights Issue. The exchange officially activated the trading code (RR26DANGSU) for Dangote Sugar Refinery Plc’s massive capital raise.

The company is offering over 8.09 billion ordinary shares at N60.00 per share based on two new ordinary shares for every three held. The trading window for these rights will remain open until 24 June 2026.

The debt market received an additional liquidity layer as the NGX listed supplementary units of existing Federal Government of Nigeria Bonds issued earlier in May. This expanded the outstanding units for both the 16.2499 per cent FGN APR 2037 and the 22.60 per cent FGN JAN 2035 tranches, providing institutional investors with deepened fixed-income depth.

The share prices of ABC Transport Plc, AIICO Insurance Plc, and Haldane McCall Plc were officially adjusted by the exchange following their respective ex-dividend dates, reflecting their cash distribution payouts to shareholders.

Migration to T+1

While the shortened week felt subdued on the surface, Friday, 29 May, marked a historic bookend for the Nigerian capital market. It was the final session operating under the legacy T+2 post-trade settlement timeline.

TAJBank Limited, Nigeria’s innovation-driven non-interest bank, has maintained its lead position as the country’s largest ethical bank, based on the statements of financial position approved by regulatory authorities at the end of the 2025 financial year.

The latest data from the bank’s FY2025 financial statement showed that the non-interest lender consolidated its frontline position in the subsector across gross assets, profit values, and other key performance indicators during the year.

Specifically, in the year under review, TAJBank’s total assets grew 41 per cent to N1.34tn from N953bn in the preceding year. Gross earning assets surged 81 per cent to N847.71bn from N467.38bn in FY2024, while total equity surged to N149.23bn, reflecting a 144 per cent growth over the N61.25bn recorded in FY2024.

A further analysis of the approved financial statement indicated that the bank posted N132.56bn in gross earnings, representing a 71 per cent growth over the N77.55bn in the previous year

Its profit before tax surged 74 per cent to N31.56bn in FY2025 from N18.17bn in FY2024, while its capital adequacy ratio stood robustly at 30 per cent.

Commenting on the bank’s performance, a chartered banker and former Director-General of the Chartered Institute of Bankers of Nigeria, Uju Ogubunka, said the financial metrics between 2024 and 2025 indicated massive progress.

Ogubunka, who is also the President of the Bank Customers Association of Nigeria, stated, “The bank’s performance is excellent evidence that it is aggressively penetrating its targets, especially in the rural areas, and thus contributing to the level of financial inclusion nationwide. It is also a testament to the profitability and viability of the non-interest banking sector in Nigeria.”

In his remarks, the Managing Director/Chief Executive Officer of TAJBank, Hamid Joda, said the stellar performance was a reflection of corporate dedication.

“The improving performance of our bank is a clear demonstration of the board and management’s strong commitment to making TAJBank the best ethical bank in Nigeria by all assessment parameters,” Joda said. “We owe our shareholders, customers, regulatory authorities, and workers a lot of gratitude for supporting our efforts targeted at transforming TAJBank into a global brand in the ethical banking space in the years ahead,” he added.

Similarly, the bank’s Executive Director, Sherif Idi, assured stakeholders of sustained value creation in line with the bank’s long-term business model. Idi said, “The FY2025 performance of TAJBank is in furtherance of its corporate vision and mission, and I want to assure all our stakeholders, particularly the shareholders and customers, that our bank shall continually promote their interest in line with our corporate shared values always.”

The Central Bank of Nigeria has unveiled an ambitious plan to bring about N2.83tn currently held outside the banking system into formal financial channels and expand financial inclusion by onboarding 50 million additional Nigerians by 2028.

The targets form part of the Nigeria Payments System Vision 2028 unveiled by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, on Monday in Abuja, as the apex bank seeks to deepen digital payments, strengthen trust in financial services, reduce cash dependence, and position Nigeria as a leading payments hub in Africa.

The target is coming a few months before Nigeria’s 2027 general elections, with the Independent National Electoral Commission scheduling the presidential and National Assembly polls for January 16, 2027, and governorship and state assembly elections for February 6, 2027, amid renewed concerns over cash-driven campaigns, vote-buying, and higher legal spending limits for candidates.

The launch brought together regulators, banks, fintech operators, telecommunications firms, development partners, and other stakeholders in the financial services ecosystem.

Cardoso said the initiative was not merely about technology or financial transactions but about creating economic opportunities, reducing poverty, and accelerating growth. According to him, efficient payment systems remain among the fastest ways to lift large numbers of people out of poverty.

“One of the fastest ways to take a large number of people out of poverty is through an efficient payments system. It’s through an efficient payment system. So let us not look at it lightly,” Cardoso said.

The governor described the Payments System Vision 2028 as a strategic roadmap that would shape how Nigerians transact, save, invest, trade, and participate in the digital economy over the next three years.

“Today, we unveil more than a payment strategy. We unveil a vision for how Nigerians will transact, trade, save, invest, and participate in an increasingly digital economy,” he said.

N2.83tn cash target

The new vision comes at a time when cash remains heavily concentrated outside the banking system despite years of financial inclusion efforts. Latest figures from the CBN’s money and credit statistics show that currency outside banks stood at N5.08tn in April 2026, representing about 90.03 per cent of the N5.65tn currency in circulation during the period.

Cardoso disclosed that the apex bank intends to reduce cash outside the banking system to less than 40 per cent of money in circulation by 2028. “I would like to see a situation where we will reduce cash outside the banking system to less than 40 per cent of money in circulation,” he said.

Using the April 2026 figures as a benchmark, achieving that target would imply reducing cash outside banks from N5.08tn to about N2.26tn, potentially returning roughly N2.83tn to the formal banking system.

Such a shift could significantly improve monetary policy transmission, increase banking sector liquidity, enhance financial intermediation, and strengthen lenders’ ability to support economic activity.

The effort comes as Nigeria prepares for the 2027 elections, when concerns over cash-intensive campaign activities and vote-buying are expected to place renewed focus on the amount of currency held outside formal financial channels.

The Governor of the CBN and members of the Monetary Policy Committee earlier warned that rising political and election-related spending ahead of the 2027 general elections could undermine the country’s disinflation gains and trigger fresh inflationary pressures. The warnings were contained in the personal statements of MPC members released by the apex bank.

At the launch of the Nigeria Payments System Vision 2028, the governor linked the target to broader efforts to build confidence in digital payments and reduce reliance on cash transactions. “Cash should no longer be king,” he said.

He recalled being concerned after watching a programme in which traders refused to accept cash payments due to concerns about the reliability of payment channels. “We need to do a lot more work to build trust and to ensure that people have no doubt that they are dealing with a strong and reliable payments system,” Cardoso said.

50 million new users

Alongside the cash target, the CBN is seeking to expand participation in the formal financial system dramatically. Cardoso said financial inclusion under the vision would rise to 95 per cent by 2028, bringing an estimated 50 million additional Nigerians into the banking and digital payments ecosystem.

“Under Vision 2028, I would like to see this reaching 95 per cent inclusion. That means 50 million more market women, farmers, and young people will have a bank account or wallet in their name, with their name and BVN protecting them,” he said.

The target represents one of the most ambitious financial inclusion drives undertaken by the apex bank in recent years and reflects the government’s broader efforts to formalise economic activity and expand access to financial services.

According to Cardoso, financial inclusion is not an end in itself but a tool for economic transformation. “The journey is to impact the lives of the poor. That’s part of it and a major part of it. The journey is to lift people out of poverty, and the journey is to have an impact on GDP,” he stated.

The governor added that a modern payment system was indispensable to economic growth, innovation, financial inclusion, and national competitiveness. The CBN governor said the new framework was designed to strengthen infrastructure, deepen inclusion, encourage innovation, improve resilience, and increase integration with regional and global payment systems.

He noted that payment systems had evolved beyond simple money transfer channels and had become strategic economic infrastructure. “In a modern economy, payment infrastructure is not simply a financial utility. It is a strategic national asset,” Cardoso said.

He explained that efficient payment systems reduce the cost of doing business, improve productivity, support trade, strengthen transparency, and broaden economic participation.

The vision also aims to help Nigeria take advantage of opportunities presented by the African Continental Free Trade Area, expanding digital commerce and increasingly interconnected global markets. “This is not merely about technology or transactions. It is about opportunity,” he said.

According to him, entrepreneurs, traders, and small businesses across the country stand to benefit from faster settlement systems, broader market access, and increased participation in regional and global commerce.

“For the entrepreneur in Aba, the trader in Zaria, the fashion designer in Ilesha, or the small business owner in Kano, efficient and interoperable payment systems can mean access to new markets, faster settlement of transactions, and greater participation in regional and global commerce,” Cardoso added.

Despite the ambitious targets, Cardoso stressed that the success of the programme would depend on implementation rather than policy declarations. “The success of PSV 2028 will not be measured by the quality of this document. It will be measured by execution,” he said.

He challenged regulators, banks, fintech firms, telecom operators, and other stakeholders to work together to ensure the vision translates into measurable economic outcomes. “As the Federal Government of Nigeria builds roads, schools, and hospitals, we here must also build the invisible roads that move money,” Cardoso said.

He added, “Vision 2028 is not a government project. It is a Nigerian project. Together, we will build a payments system that is fast, inclusive, secure, and proudly Nigerian.”

Providing further details of the framework, the CBN’s Deputy Governor, Economic Policy Directorate, Dr Muhammad Abdullahi, said the Payments System Vision 2028 was built around five strategic pillars. According to him, the pillars include payment infrastructure and interoperability, digital financial inclusion, innovation and emerging technologies, cross-border payments, and regulation and cybersecurity.

Abdullahi described modern payment systems as critical economic infrastructure that supports trade, investment, innovation, productivity, and financial inclusion. “Every successful payment represents more than a financial transaction. It enables commerce, supports enterprise, facilitates trade, connects markets, and creates opportunities for economic participation,” he said.

The deputy governor explained that the first pillar focuses on modernising payment infrastructure, strengthening interoperability among banks and fintechs, deploying open APIs, and expanding real-time payments. “Efficient payment infrastructure lowers transaction costs, improves business productivity, and enables firms of all sizes to participate competitively in the digital economy,” he stated.

The second pillar centres on financial inclusion, consumer protection, and financial literacy, while the third seeks to leverage emerging technologies such as artificial intelligence, blockchain, digital assets, and open banking.

The fourth pillar focuses on cross-border payments and integration with the Pan-African Payment and Settlement System as well as the African Continental Free Trade Area framework.

According to Abdullahi, reducing payment friction across borders would strengthen trade, lower settlement costs, improve remittance efficiency, and position Nigeria as a regional settlement hub.

The fifth pillar emphasises regulation, cybersecurity, fraud prevention, and consumer trust. “No system scales without trust, and no trust exists without security,” he said.

In his opening remarks, the Director of Payments System Policy at the CBN, Musa Jimoh, traced the country’s payment transformation journey to 2007, when the apex bank launched the Payment System Vision 2020.

He recalled that Nigeria’s financial system at the time was heavily dependent on cash and had limited electronic payment infrastructure. “It started in 2007, when the Central Bank decided to set up a roadmap to modernise the payment system,” he said.

According to Jimoh, the CBN identified three major barriers to financial inclusion at the time: high banking costs, limited access to financial institutions, and stringent account-opening requirements.

To address the challenges, the bank introduced policies, including agent banking and the cashless policy. “Today, we are proud to announce that we have over two million agents spread across the country,” he said.

Jimoh said the growth of agent networks had expanded financial access while creating employment opportunities across the country.

Regulators back vision

The Director-General of the Securities and Exchange Commission, Dr Emomotimi Agama, said collaboration among financial regulators would be critical to the success of the initiative.

“For us in the capital market, it’s delivery versus payment. Delivery speaks to securities and payment means having to pay the cash,” he said.

Agama argued that Nigeria had already become a global reference point in digital payments and urged stakeholders to tell the country’s story more effectively on the global stage.

The Executive Vice Chairman of the Nigerian Communications Commission, Dr Aminu Maida, also endorsed the framework, describing it as an important step towards achieving the Federal Government’s goal of building a $1tn economy.

Maida noted that fraud and cybersecurity challenges increasingly cut across sectors and borders, making collaboration essential. “Collaboration has to be what guides us moving forward towards achieving that goal of a trillion-dollar economy,” he said.

He added that the NCC was expanding fibre infrastructure and broadband connectivity nationwide to support digital payments and financial inclusion.