The Central Bank of Nigeria (CBN) has set a January 31, 2025 deadline for companies that trade foreign currency to prove they’re following the new rules laid out in the Nigeria FX Code.

The apex bank announced the launch of this code via its website on Monday.

This code, which started on December 2, 2024, aims to make foreign exchange trading in Nigeria more fair and transparent. It applies to banks and other financial companies that are licensed to deal in foreign exchange.

The CBN is requiring these companies to look at their own practices and write a detailed report about how well they’re following the rules. This isn’t just paperwork – the reports need to be approved by each company’s board of directors, who must also provide minutes from their board meetings to show they’re taking this seriously.

As the code states: “Market Participants will be required to conduct a self-assessment and submit to the CBN a report on the institution’s level of compliance with the FX Code by January 31, 2025.”

After this first deadline, companies will need to send in reports every three months to the CBN’s Financial Markets Department. These follow-up reports must be submitted within two weeks after each quarter ends, with the first one due by March 31, 2025.

Companies that don’t follow the rules could face financial penalties under Nigeria’s banking laws. According to the CBN, these rules are based on international standards but are specially adapted for Nigeria’s foreign exchange market. They cover everything from ethical behaviour to how transactions should be carried out, how information should be shared, and how risks should be managed.

Through this FX code, the central bank wants to make sure everyone in the foreign exchange market maintains high professional standards, has proper oversight in place, handles trades fairly, keeps sensitive information private, and has good systems for managing risks.