The Central Bank of Nigeria (CBN) has issued the Nigerian Foreign Exchange Code (FX Code), effective from October 14, 2024, under the authority of the CBN Act 2007 and the Banks and Other Financial Institutions Act (BOFIA) 2020. The FX Code outlines various principles to enhance transparency, integrity, and efficiency in the Nigerian Foreign Exchange (FX) market, which will ultimately foster a more reliable and accountable trading environment that aligns with global best practices.
The FX Code applies to Market Participants. Market Participants are banks licensed by the Central Bank of Nigeria under the CBN Act 2007 and Bank and Other Financial Institutions Act (BOFIA) 2020 and engage in the wholesale foreign exchange business in Nigeria as part of their licensed business. In this Client’s Alert, we highlighted the key compliance requirements and core principles of the FX Code to guide Market Participants and apprise stakeholders on the intendment of the code in ensuring compliance with regulatory