The Central Bank of Nigeria (CBN) has issued a directive to all participants in the foreign exchange (FX) market, mandating them to submit compliance reports on adherence to the Nigeria FX Code by January 31, 2025. This initiative is part of the apex bank’s ongoing efforts to enhance ethical standards, governance, and transparency within the FX market.
The Nigeria FX Code, effective since December 2, 2024, establishes key principles of good practice aimed at fostering a robust, fair, and transparent FX environment. It applies to authorized dealers licensed under the CBN Act of 2007, the Bank and Other Financial Institutions Act of 2020, and entities engaged in wholesale FX transactions across Nigeria.
As part of the directive, market participants are required to conduct a thorough self-assessment and submit comprehensive reports detailing their level of compliance with the FX Code. These reports must be endorsed by the institution’s board of directors, demonstrating leadership accountability. Additionally, the reports must include an implementation plan to address any identified gaps in compliance.
To further reinforce transparency, participants are also required to provide extracts from their board meeting minutes, showing evidence of oversight and commitment to the principles outlined in the FX Code.
This compliance initiative underscores the CBN’s determination to instill integrity and discipline within Nigeria’s FX market. It also aligns with broader efforts to position the market as a benchmark for ethical practices in the financial sector.
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