The Central Bank of Nigeria (CBN) has announced significant changes to its foreign exchange policy, granting Nigerians unrestricted access to funds held in domiciliary accounts. The new framework, detailed in the Foreign Exchange Manual 2026, reverses several restrictions implemented during the COVID-19 pandemic and signals a move toward a more liberalized FX market.
Unrestricted Access for Personal Dollar Account Holders
Under the revised guidelines, individuals can now freely use their foreign currency balances without prior CBN approval. The requirement for Form A has been removed for remittances funded directly from personal domiciliary accounts, reducing paperwork and delays. Account holders can also make telegraphic transfers of up to $10,000 daily, provided banks record the transaction purpose in the Foreign Exchange Management System (FEMS). This policy aims to rebuild trust in Nigeria's FX market and attract capital inflows.
Stricter Oversight for Exporters
Exporters face tighter compliance requirements. While they can still access funds in export proceeds domiciliary accounts for approved transactions, every transaction must be supported by proper documentation. Cash withdrawals from these accounts are no longer allowed. The CBN has reinforced anti-money laundering and counter-terrorism financing measures, placing export-related FX transactions under closer monitoring. For third-party transfers, account holders must disclose the transaction purpose, and banks must report using designated FEMS codes.
Boost for FX Liquidity and Market Transparency
The new framework allows exporters to transfer funds from export proceeds accounts in one bank to ordinary domiciliary accounts in another for eligible transactions. Exporters can also sell their FX earnings to any Authorised Dealer Bank in the Nigerian Foreign Exchange Market (NFEM), which is expected to deepen liquidity and improve price discovery. For international firms in extractive industries, the CBN retains the provision for repatriating up to 100% of export proceeds through authorized banks, subject to documentation.
Balancing Liberalisation with Control
The 2026 FX Manual reflects the CBN's dual strategy: liberalizing access for individuals while strengthening oversight of export earnings. By removing barriers for personal dollar account holders and tightening monitoring of export proceeds, the apex bank aims to attract more FX into the formal market and ensure transparency across cross-border transactions.
Additional Changes: PTA and BTA Rules Relaxed
In a related move, the CBN has partially relaxed its 2024 cashless rule on Personal Travel Allowance (PTA) and Business Travel Allowance (BTA). Effective June 1, 2026, travellers can now receive 25% of their PTA and BTA in cash dollars, with the remaining 75% processed electronically. This change is expected to ease travel for Nigerians.
