The Central Bank of Nigeria (CBN) has asked deposit money banks and all market participants to adopt the principles of the Nigeria Scholarship Code (FX) of all my heart, warning that any individual or institution that violates the Code FX will face rapid and decisive sanctions.
The CBN also revealed that Nigeria's external reserves have grown by 12.74 percent, reaching US $ 40.68 billion at the end of 2024 as a result of the various reforms in which it has embarked.
The Apex Bank announced the close completion of the forensic verification process of the $ 7 billion of delays in FX, adding that the final agreements will be processed accordingly.
Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), declared this on Tuesday in an opening speech at the launch of the Nigeria scholarship code (FX) at the Central Bank of Nigeria, headquarters in Abuja.
Cardoso said that the six guiding principles and 52 Sub-Principles of the FX Code must become the standard of conduct in all participating institutions.
All the CEO of the banks in the country were forced to sign a statement of commitment that remains with the code.
He stressed that the launch of the Nigeria currency code (FX Code) reflects the collective vision of a currency market based on integrity, justice, transparency and efficiency, critical pillars for economic growth and stability of Nigeria, and reaffirmed the collective commitment with configuring a more resistant and transparent FX market.
According to him, the FX code represents a decisive step forward, establishing clear and enforceable standards for ethical behavior, transparency and good governance in the foreign exchange market.
Cardoso reiterated that it is a firm sign that businesses as usual will no longer be enough, and also a plan for the future, based on the harsh lessons of the past.
He warned that the era of multiple exchange rates, which created privileges for a few selected at the expense of most Nigerians, severely undermine market integrity.
“As an example, the $ 7 billion of FX delays that have taken more than 12 months to verify have led to the discovery of multiple unusual and even illegal practices of which we should not be proud as a nation. The forensic verification process is now almost complete, and the final agreements will be processed accordingly, ”said Cardoso.
He added: “Similarly, the period of unprecedented forms and financing inflicted significant damage to our economy, contributing to inflation, monetary depreciation and eroded public trust.
“These practices should never return. The FX code is a firm rejection of such distortions and an equally firm commitment to a future defined by the equity, trust and principles promoted by the market.
“The system itself played a key role in the challenges of the past. Little ethical behaviors and systemic abuse, either for those with privileged access or by complicit participants, eroded public trust and damaged our economy.
“We will not tolerate any attempt to return to those practices. Any individual or institution that violates the FX code will face rapid and decisive sanctions. “
The governor of the Central Bank of Nigeria reported that the trip to market reform is already producing results.
According to him, the year 2024 was marked by structural reforms that sought to return the Naira at a certain market price and facilitate volatility, since several market distortions were eliminated.
“The reforms that include the interruption of quasi-fiscal interventions, the unification of the exchange rate windows, the elimination of an accumulation of currency commitments and the recalibration of monetary policy tools were necessary to redirect the course of our economy , restore order and credibility to our FX market, and forward the CBN in its basic mandates, ”said Cardoso.
In particular, he said that the introduction of the Electronic Exchiving Exchange Matching system (EFEMS) in December 2024 has improved the transparency and efficiency of the market, noting that “since its launch, the Naira has been significantly appreciated, since ₦ 1,663.90 the December 2, 2024, until ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ ₦ 1,536.72 As of yesterday. “
Cardoso explained that the stability of the exchange rate is a cornerstone of macroeconomic health for an economy such as Nigeria, and that beyond the daily market, the exchange rate influences critical indicators such as the balance of payments, external reserves, external reserves, International trade, inflation, economic and economic growth and foreign investment, since these factors collectively form the economic well -being of our nation and people.
He acknowledged that inflation in particular remains a critical challenge since the increase in prices erodes purchasing power and increases the cost of living, adding: “But by promoting the stability of the exchange rate, we are addressing this problem in front” .
“In addition, our external reserves have grown by 12.74 percent, reaching US $ 40.68 billion at the end of 2024. This achievement reflects the effectiveness of the reforms aimed at paying obligations of FX inherited and growing organically reserves” .
“The FX code marks a new era of compliance and responsibility. It is not just a set of recommendations; This is an executable framework. According to the 2007 CBN Law and the Bofía Law of 2020, violations will comply with administrative sanctions and actions. Market participants must recognize that adhesion to these principles is not simply compliance, but about restoring public confidence in our financial system.
“Beyond the currency markets, the FX Code is part of our renewed approach in compliance throughout the financial services industry, and I am particularly happy that we have the leadership of the industry in this room to reinforce a collective commitment to The trip ahead.
“Self -regulation and behavior are at the center of changes in culture that we hope to see at stake in the industry, and I hope that the principles of the FX code will be applied in other business areas.”
The FX code is based on six basic principles: ethics, governance, execution, information exchange, management and compliance with confirmation and liquidation, and these principles are aligned with international standards while addressing the unique challenges of Nigeria.
They provide the basis for a resistant and transparent market that inspires confidence among national and international participants.
Cardoso said: “Leaders in this Chamber (Presidents of the Board, Managing Directors and main compliance officers) must lead from the front. Embarting these standards within their organizations is not optional. “
He reiterated that the era of opaque practices is over, and the “CBN 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 responsibility and transparency, and we must all play our role. ”
As the CEO of the banks signed a state of commitment, Cardoso reminded him of everything that the moment served as a collective promise of transparency, ethical behavior and equity in the market.
He asked that everyone joined the construction of a financial ecosystem that embodies resilience, global competitiveness and economic prosperity.
All deposit money banks promised to comply with the FX code.
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