Overview

The Foreign Exchange (Monitoring and Miscellaneous Provisions) Act is a Nigerian law enacted on 16th January 1995 to establish an Autonomous Foreign Exchange Market and provide for the monitoring and supervision of foreign exchange transactions. The Act is divided into seven parts: Part I establishes the Autonomous Foreign Exchange Market, detailing permitted instruments (convertible currencies and money market instruments), non-disclosure of sources of imported foreign currency, appointment and revocation of Authorised Dealers and Buyers, transactions, supervision by the Central Bank of Nigeria, rate determination, permitted and non-permitted transactions (e.g., prohibits certain capital transfers), import/export of currencies, repatriation of funds, investment of foreign capital in Nigerian enterprises or securities, and reporting requirements for Authorised Dealers. Part II covers operation of foreign currency domiciliary accounts, including account maintenance, interest rates, exporters' obligations, Central Bank monitoring, cash import/export, payment for goods, surveillance of transactions, record preservation, and reporting of international fund transfers. Part III deals with securities dealings. Part IV addresses export of goods and services. Part V imposes a duty to collect debts. Part VI defines offences under Parts I and II, including penalties for individuals and bodies corporate. Part VII includes miscellaneous provisions such as blocked accounts, ministerial directives, jurisdiction, application to the State, extent of the Act, modification of existing legislation, repeals and savings, transitional provisions, regulations, interpretation, and short title. The Act empowers the Central Bank, with ministerial approval, to issue guidelines for market operations.

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