* Cardoso: National reserves not for funding the market
*••Stakeholders, Finance Minister hail move as boost for investor confidence
The Central Bank of Nigeria (CBN) has officially unveiled the fourth edition of its Foreign Exchange (FX) Manual, a strategic move aimed at deepening market liquidity, enhancing transparency, and restoring investor confidence in the nation’s financial system.
Speaking at the launch in Abuja on Friday, CBN Governor Mr. Olayemi Cardoso announced that the revised manual will take effect on June 1, 2026. He noted that the document was the product of extensive consultations with key stakeholders, including commercial banks, exporters, importers, and international development partners.
According to Cardoso, the new framework reflects the apex bank’s commitment to modernizing foreign exchange administration in alignment with global best practices.
**Surge in Market Liquidity**
Highlighting the success of ongoing reforms, the Governor revealed that the Nigerian FX market has seen a dramatic recovery in activity. Daily turnover, which averaged approximately $100 million at the start of the current administration’s reform journey, has surged to between $400 million and $600 million.
He further disclosed that on several occasions in recent months, the market recorded single-day transactions as high as $1 billion.
“We have transitioned from a one-way market where the central bank was the sole intervener to a much more dynamic system,” Cardoso stated. “Our reforms are gradually encouraging freer entry and exit for investors without unnecessary restrictions.”
**Reserves are Not for Market Funding**
In a notable policy clarification, Cardoso maintained that Nigeria’s foreign reserves should be protected and not viewed as a primary source of liquidity for the FX market. “Reserves are reserves. They are not what you look to fund a market,” he asserted.
He emphasized that the revised manual—the first update since 2018—was necessitated by evolving global economic realities and the need for a coherent regulatory framework to anchor price stability.
**Key Structural Changes**
Providing a technical breakdown of the manual, the Deputy Governor for Economic Policy, Mr. Muhammad Abdullahi, explained that the document introduces several pro-business provisions, Unfettered access to export proceeds to encourage repatriation of foreign earnings, Introduction of non-resident investment accounts to attract foreign portfolio investment, Guidelines for PAPSS transactions** (Pan-African Payment and Settlement System) to facilitate intra-African trade, Revised documentation requirements** for service exports and operational procedures to reduce transaction bottlenecks.
“This is not a stand-alone exercise but part of a broader institutional reform designed to strengthen the integrity and credibility of our FX system,” Abdullahi said.
Stakeholder Endorsements
The Managing Director and CEO of Access Bank, Mr. Roosevelt Ogbonna, commended the CBN for focusing on a “market-driven” foundation. He noted that while previous attempts at currency competitiveness failed due to structural weaknesses, the current approach prioritizes credibility in the international market.
“What the Central Bank has done differently this time is to build a strong foundation first, creating a market system that works and earns global trust,” Ogbonna remarked.
Similarly, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun (represented by the Permanent Secretary, Special Duties, Mr. Muhammed Danjuma), urged financial institutions and businesses to fully embrace the new guidelines.
“The success of this initiative depends on the commitment of all stakeholders to effective implementation. We must work together to achieve a stable and resilient forex market,” the Minister stated.
The CBN confirmed that the revised manual will be distributed free of charge to all authorized dealers, supported by strengthened monitoring mechanisms to ensure total compliance.
