CBN demands strict compliance from Authorized Dealer Banks on FX allocation

The Central Bank of Nigeria has notified All Authorized Dealer Banks regarding the re-allocation of Foreign Exchange from CBN Retail Window.

In a circular dated May 3rd 2024, the Central Bank of Nigeria stated thus:

We have observed an increase in the number of requests seeking for waiver for contravening extant regulations and stipulated guidelines, including shipments predating Forms M or Letters of Credit Establishment, Forms M Transfers and re-allocation of foreign exchange from the CBN retail window several months/years after purchase”.

“In this regard, we hereby draw the attention of Authorised Dealer Banks (ADB) to the Monetary, Credit, Foreign Trade and Exchange Policy Guidelines for Fiscal Years 2022/2023 as reviewed and reiterate that all operators shall strictly adhere to the conditions and rules stated there-in.  Where rules are breached, sanctions should be applied including suspension from participating in the FX market.

Please note that it is the responsibility of all Authorised Dealers to inform the customers of the need to strictly adhere to all extant regulations. The CBN would not entertain request for waivers or concessions from the provisions of extant regulations by the ADBs on behalf of the customers”.

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