The Central Bank of Nigeria has introduced a new reporting requirement aimed at improving transparency in the country’s foreign exchange market by closely monitoring the movement of retail dollar transactions.
Under the new directive, banks and other authorised foreign exchange dealers are expected to provide more detailed information on retail FX transactions. They will now be required to capture and report who receives foreign currency, the purpose for which it is obtained and how the funds are eventually used.
The move is part of the apex bank’s ongoing efforts to strengthen oversight of Nigeria’s foreign exchange market and reduce opportunities for the diversion or misuse of foreign currency.
For individuals and businesses, the directive does not prevent access to dollars. Instead, it introduces stricter reporting requirements that will allow the CBN to gain better insight into how foreign exchange moves through the economy.
The regulator believes the additional data will help curb round tripping, improve compliance with existing foreign exchange regulations and make it easier to identify suspicious or irregular transactions.
The latest directive follows a series of reforms introduced by the CBN over the past year to improve confidence in the country’s foreign exchange system.
Since 2023, the apex bank has unified multiple exchange rate windows, tightened regulations governing Bureau De Change operators and implemented measures aimed at making the foreign exchange market more transparent and efficient.
In March 2026, the CBN also introduced enhanced anti money laundering requirements for banks, including the deployment of artificial intelligence driven transaction monitoring systems. Its Payments System Vision 2028 further outlined plans to modernise Nigeria’s financial infrastructure while strengthening fraud detection and regulatory oversight.
The new reporting framework aligns with these broader reforms by giving regulators greater visibility into the movement of foreign exchange across the financial system.
The policy comes at a time when demand for dollars remains strong. Businesses continue to depend on foreign exchange to import goods, pay overseas suppliers, finance education abroad and settle medical expenses outside the country.
By collecting more comprehensive transaction data, the CBN hopes to better understand the country’s foreign exchange demand, develop more effective policies and ensure available foreign currency reaches genuine users instead of speculators.
The apex bank has consistently maintained that improving confidence in Nigeria’s foreign exchange market requires not only increasing the supply of foreign currency but also strengthening transparency and accountability.
The directive also reflects a growing global trend in financial regulation, where central banks increasingly rely on detailed transaction data to combat financial crimes, improve policy decisions and monitor market activities more effectively.
For Nigeria, where foreign exchange remains one of the economy’s most closely watched sectors, the CBN believes enhanced reporting and stronger oversight will contribute to a more stable, transparent and efficient foreign exchange market.
