CBN Imposes N100m Fine on Banks for Inadequate Forex Documentation
The Central Bank of Nigeria’s updated Foreign Exchange Manual now mandates a N100 million penalty plus N10 million per transaction for authorised dealers that complete forex deals without proper paperwork. This new compliance framework aims to strengthen oversight, raise documentation standards, and deter misconduct in the foreign currency market. Under the revised rules, banks face escalating sanctions for breaching Net Open Position limits, ranging from written warnings to multi-month suspensions. Daily and monthly reporting deadlines have been tightened, with late submissions attracting fines of up to N500,000 per day and non-submission penalties starting at N5 million. Importers and exporters also face stricter deadlines and fines. Import documentation must be submitted within 90 days or risk market restrictions, while export proceeds must be repatriated within 90 to 180 days. The manual introduces operational changes—such as higher advance payment limits for imports, wider tolerance on shipment values, and new provisions for service exports and tuition remittances—to boost efficiency and market confidence.
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