The Central Bank of Nigeria (CBN) has directed all foreign exchange (FX) market participants to perform self-assessments and submit compliance reports on their adherence to the Nigerian FX Code by January 31, 2025.
This initiative aims to foster ethical practices and strengthen governance in the FX market. Participants are required to evaluate their compliance, identify gaps, and submit an implementation plan endorsed by their boards of directors. Extracts from board meeting minutes must also be provided as proof of oversight.
Quarterly compliance reports will be mandatory, with the first due by March 31, 2025. Non-compliance could result in monetary penalties and administrative sanctions under the CBN Act 2007 and BOFIA 2020.
The Nigerian FX Code, set for official launch on January 28, 2025, in Abuja, outlines ethical guidelines for responsible conduct in the FX market.