Governor of the Central Bank of Nigeria Olayemi Cardoso has mandated commercial banks and other foreign exchange market operators to uphold integrity and good practices (as contained in a new operational code) or risk regulatory sanctions.
The CBN governor made the remarks at the launch of the Nigeria Foreign Exchange Code (FX Code) with a vision for a foreign exchange market built on integrity, fairness, transparency and efficiency, critical pillars for Nigeria’s economic growth and stability.
The FX Code is built on six core principles — ethics, governance, execution, information sharing, risk management and compliance, and confirmation and settlement processes. These principles align with international standards while addressing Nigeria’s unique challenges. Built in collaboration with commercial banks, Cardoso said the FX Code marks a new era of compliance and accountability.
“Under CBN Act 2007 and BOFIA Act 2020, violations will be met with penalties and administrative actions. Market participants must recognize that adherence to these principles is not merely about compliance but about restoring public trust in our financial system,” the CBN Governor said at the launch of the enforceable framework in Abuja yesterday.
“Let me reiterate: the era of opaque practices is over. We will not hesitate to act against any institution or individual that undermines the integrity of our financial markets. The FX Code is a binding commitment to accountability and transparency—and we must all play our part,” Cardoso stated at the event that was attended by virtually all the chief executive officers of the banks.
Cardoso said the various initiatives of the central bank under his watch, including the introduction of the Electronic Foreign Exchange Matching System (EFEMS) in December 2024 have led to the growth of the foreign reserves and improved market transparency and efficiency.
All the bank executives commended the initiative with a promise to support its implementation and uphold the integrity of the FX market. Managing director of United Bank for Africa Oliver Alawuba the initiative not only complements other notable reforms of the CBN but also sets a new benchmark for accountability and integrity in the FX market. He believes that by embedding global best practices and fostering a culture of trust and equity, the code will enhance market efficiency, attract greater participation, and elevate Nigeria’s standing in the global financial landscape.
“This launch is not just the unveiling of a framework – it is a call to action for all stakeholders to uphold the principles of fairness, ethical behaviour, and professionalism. The strength of any financial market lies in the integrity of its participants, and with the Nigeria FX Code, we now have a unified platform to reinforce this commitment,” Alawuba stated.
Also, the chairman of Zenith Bank Plc, Jim Ovia said the initiative will help to restore investors’ confidence, create equal opportunity for the market players, entrench transparency and ensure stability in the forex market.
Cardoso said the external reserves have grown by 12.74 per cent, reaching $40.68 billion at the end of 2024, the achievement he said reflects the effectiveness of reforms aimed at paying off legacy FX obligations and growing reserves organically.
Cardoso said the FX Code is a firm rejection of distortions in the market and an equally firm commitment to a future defined by fairness, trust and market-driven principles.
CBN’s director of financial market Dr Omolara Duke said the aim is to inspire confidence as part of an effort to join the list of registered 54 countries that have adopted the integrity-based FX operation framework. “It demands that we uphold integrity and ensure that the principles in the code are entrenched,” she stated today at the launch of the code in Abuja.
The CBN and all the banks signed up for the full implementation of the code. The central bank it signed to hold itself accountable in the implementation of the code.
