DEREGULATION AND GUIDELINES
The Exchange Control Act, which was the principal legislation regulating foreign currency related transactions, was repealed in 1995. Exchange control policies have become completely liberalised, except for a few controls that apply to banks, for the purpose of compiling statistics.
At the moment, exchange control transactions are regulated principally by the Foreign Exchange (Monitoring & Miscellaneous Provisions) Decree No.17, 1995 and the guidelines of the Central Bank of Nigeria (CBN) Monetary Policy Circular, as maybe stipulated, from time to time.
FOREIGN EXCHANGE (MONITORING AND MISCELLANEOUS PROVISIONS) DECREE, 1995
This decree established an Autonomous Foreign Exchange Market ("AFEM"). Under the decree, an individual or corporate body may invest in any Nigerian enterprise or security, with foreign currency or capital imported into Nigeria through an Authorised Dealer (a bank or no-banking corporate organisation so licensed by the Central Bank of Nigeria), either by telegraphic transfer, cheques or other negotiable instruments. Also, a person, where the resident in or outside Nigeria, or a citizen of Nigeria or not, may deal in, invest in, acquire or dispose of, create or transfer any interest and other money market instruments whether denominated in foreign currencies in Nigeria or not