Information
Cardoso Launches Nigeria FX Code
Abuja - As part of his reform agenda, the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi
Cardoso, has formally launched the Nigerian Foreign Exchange Code (FX Code), to promote
accountability, ensure compliance, and engender transparency in the country’s foreign exchange
market.
Speaking at the event which held at the CBN Head Office Auditorium, Abuja, on Tuesday, January 28, 2025, Mr. Cardoso said: "The FX Code marks a new era of compliance and accountability. It is not just a set of recommendations; this is an enforceable framework."
He emphasized that the Nigerian FX Code, which comes on the heels of the Electronic Foreign Exchange Matching System (EFEMS) launched in December 2024, sets clear and enforceable standards for ethical conduct and governance in the foreign exchange market, addressing past challenges that undermined market integrity.
“We must not forget where we are coming from. The era of multiple exchange rates, which created privileges for a select few at the expense of most Nigerians, inflicted significant damage on market integrity.”
“Practices such as unprecedented ways-and-means financing contributed to inflation, currency depreciation, and eroded public confidence. These practices must never return," Cardoso warned.
He noted that unethical behavior and systemic abuses were key contributors to past issues and vowed decisive action against any breaches of the FX Code.
"We will not tolerate any attempts to revert to those practices. Any individual or institution that violates the FX Code will face swift and decisive sanctions."
Speaking at the event which held at the CBN Head Office Auditorium, Abuja, on Tuesday, January 28, 2025, Mr. Cardoso said: "The FX Code marks a new era of compliance and accountability. It is not just a set of recommendations; this is an enforceable framework."
He emphasized that the Nigerian FX Code, which comes on the heels of the Electronic Foreign Exchange Matching System (EFEMS) launched in December 2024, sets clear and enforceable standards for ethical conduct and governance in the foreign exchange market, addressing past challenges that undermined market integrity.
“We must not forget where we are coming from. The era of multiple exchange rates, which created privileges for a select few at the expense of most Nigerians, inflicted significant damage on market integrity.”
“Practices such as unprecedented ways-and-means financing contributed to inflation, currency depreciation, and eroded public confidence. These practices must never return," Cardoso warned.
He noted that unethical behavior and systemic abuses were key contributors to past issues and vowed decisive action against any breaches of the FX Code.
"We will not tolerate any attempts to revert to those practices. Any individual or institution that violates the FX Code will face swift and decisive sanctions."
Earlier in a presentation on the overview of the Nigerian FX Code by Deputy Governor, Economic
Policy Directorate, Abdullahi, Muhammad Sani, highlighted the six guiding principles and the 52
sub-principles of the code.
In her welcome address, the Director Financial Markets Department (FMD), Dr. Omolara Duke, disclosed
that the Nigerian FX Code was adopted from the Global FX Code, launched in May 2017. She noted that
Nigeria now joins 54 other central banks in signing onto this global standard.
"The true power of the Code lies in its ability to create a legacy. Our goal is to ensure that Nigeria’s foreign exchange market is seen as a beacon of trust and integrity on the global stage," Dr. Duke said.
Speaking further she commended all Deposit Money Banks (DMBs) for their collaboration in shaping the Code and urged continued commitment to upholding its principles.
The event featured goodwill messages from several industry leaders who applauded the CBN’s leadership and pledged their commitment to the Code. Those who spoke were: The Chairman, of Zenith bank Group, Jim Ovia; Managing Director, of United Bank for Africa (UBA), Mr. Oliver Alawuba; Managing Director, Citi Bank, Mrs. Nneka Enwereji; Managing Director, Zenith Bank Plc, Dr. Adora Umeoji; Managing Director, Parallex Bank Limited, Dr. Olufemi Bakare; Managing Director, Standard Chartered Bank, Mr. Daku Ajene; Managing Director, Fidelity Bank, Mrs. Nneka Onyeali-Ikpe.
Each speaker emphasized the significance of the Nigerian FX Code in fostering a robust and ethical financial ecosystem in Nigeria.
Highpoint of the event included a panel discussion on Ethical conduct in the Nigerian Foreign Exchange Market moderated by Special Adviser to the CBN Governor on Financial Markets, Mr. Zeal Akaraiwe; Special Adviser on Compliance, Ms Sola Phillips; Managing Director, First Bank of Nigeria, Mr. Olusegun Alebiosu; Managing Director, Guaranty Trust Bank, Mrs. M.C. Olusanya; President, Financial Market Dealers Association, Ms Nadia Zakari.
The event culminated in the official signing of the Nigerian FX Code by Deposit Money Banks (DMBs), underscoring a collective commitment to the Code's principles. The ceremony was anchored by the Director of, Corporate Secretariat Department (CSD). Mrs. Rashida Mongonu.
The unveiling of the Nigerian FX Code represents a decisive step toward fostering transparency, trust, and integrity in Nigeria’s foreign exchange market. As Governor ardoso remarked, this initiative reflects the CBN’s unwavering commitment to restoring public confidence and setting a global benchmark for ethical conduct in financial markets.
"The true power of the Code lies in its ability to create a legacy. Our goal is to ensure that Nigeria’s foreign exchange market is seen as a beacon of trust and integrity on the global stage," Dr. Duke said.
Speaking further she commended all Deposit Money Banks (DMBs) for their collaboration in shaping the Code and urged continued commitment to upholding its principles.
The event featured goodwill messages from several industry leaders who applauded the CBN’s leadership and pledged their commitment to the Code. Those who spoke were: The Chairman, of Zenith bank Group, Jim Ovia; Managing Director, of United Bank for Africa (UBA), Mr. Oliver Alawuba; Managing Director, Citi Bank, Mrs. Nneka Enwereji; Managing Director, Zenith Bank Plc, Dr. Adora Umeoji; Managing Director, Parallex Bank Limited, Dr. Olufemi Bakare; Managing Director, Standard Chartered Bank, Mr. Daku Ajene; Managing Director, Fidelity Bank, Mrs. Nneka Onyeali-Ikpe.
Each speaker emphasized the significance of the Nigerian FX Code in fostering a robust and ethical financial ecosystem in Nigeria.
Highpoint of the event included a panel discussion on Ethical conduct in the Nigerian Foreign Exchange Market moderated by Special Adviser to the CBN Governor on Financial Markets, Mr. Zeal Akaraiwe; Special Adviser on Compliance, Ms Sola Phillips; Managing Director, First Bank of Nigeria, Mr. Olusegun Alebiosu; Managing Director, Guaranty Trust Bank, Mrs. M.C. Olusanya; President, Financial Market Dealers Association, Ms Nadia Zakari.
The event culminated in the official signing of the Nigerian FX Code by Deposit Money Banks (DMBs), underscoring a collective commitment to the Code's principles. The ceremony was anchored by the Director of, Corporate Secretariat Department (CSD). Mrs. Rashida Mongonu.
The unveiling of the Nigerian FX Code represents a decisive step toward fostering transparency, trust, and integrity in Nigeria’s foreign exchange market. As Governor ardoso remarked, this initiative reflects the CBN’s unwavering commitment to restoring public confidence and setting a global benchmark for ethical conduct in financial markets.