Forex trading in Nigeria is legal and recognized as an investment activity, governed by the Central Bank of Nigeria under the Central Bank of Nigeria Act of 2007 and related regulations. Individuals and institutions engage in buying and selling foreign currencies primarily through authorized banks and licensed bureaux de change, which operate under strict oversight to ensure transparency and stability in the foreign exchange market.
Under the Revised Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria, no person or entity may conduct foreign exchange trading as a retail bureau de change without first obtaining prior authorization from the Central Bank of Nigeria (1).
"No person shall carry on the business of BDC in Nigeria except with the prior authorization of the CBN. A BDC is a company licensed by the CBN to carry on only retail foreign exchange business in Nigeria."
In January 2025, the Central Bank of Nigeria launched the Nigerian Foreign Exchange (FX) Code to further reinforce ethical standards, transparency, and accountability among authorised dealers, providing a comprehensive framework for professional conduct and risk management in the forex market (2).
While forex trading offers opportunities for speculative gains and currency hedging, market participants must ensure compliance with all licensing requirements and guidelines. Engaging in unlicensed or unauthorized forex activities can attract penalties under Nigerian financial regulations, underscoring the importance of dealing only with CBN-authorized institutions.
Source:
https://www.cbn.gov.ng/Out/2024/FPRD/Revised%20Regulatory%20and%20Supervisory%20Guidelines%20for%20Bureau%20De%20Change%20Operations%20in%20Nigeria.pdf
https://www.cbn.gov.ng/Out/2025/CCD/CBN_UPDATE_JANUARY_2025_EDITION.pdf
Last updated: 17-05-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
