The Central Bank of Nigeria (CBN) has issued a directive requiring all foreign exchange (FX) market participants to conduct a self-assessment and submit a compliance report detailing their adherence to the newly introduced Nigerian FX Code by January 31, 2025.
The initiative aims to promote ethical conduct and strengthen governance within the Nigerian FX market.
According to the compliance requirements, market participants must perform a self-evaluation of their adherence to the FX Code and submit a comprehensive report to the CBN.
This report should include an implementation plan to address any identified compliance gaps and must be endorsed by the institution’s board of directors.
Additionally, extracts from the relevant board meeting minutes should be provided to demonstrate oversight.
Following the initial submission, participants are required to file quarterly compliance reports with the CBN’s Financial Markets Department (FMD).
The reports are due within 14 days after the end of each quarter, with the first report expected by March 31, 2025.
To ensure strict adherence to the FX Code, the CBN has outlined enforcement mechanisms, including monetary penalties as provided under the CBN Act 2007 and the Banks and Other Financial Institutions Act (BOFIA) 2020.
Non-compliant participants may face administrative sanctions, underscoring the importance of adhering to the FX Code.
The Nigerian FX Code is designed to provide ethical guidelines for authorized dealers in the Nigerian FX market, promoting responsible market conduct.
The CBN has scheduled the official launch of the FX Code for January 28, 2025, at its head office auditorium in Abuja.
