The Nigerian Law Reform Commission has proposed various amendments to the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act. The Bill contains far reaching proposals some of which are good but require more careful considerations to avoid possible loopholes and prevent unexpected consequences. For instance, the fine of five million naira for CBN staff involved in foreign exchange trading is unlikely to be a deterrent where the potential gain far exceeds the likely penalty.
Overall the Commission needs to engage extensively with key stakeholders to ensure that the proposals achieve the desired objectives and not further complicate the current challenges in the foreign exchange market.
Below is our Regulatory Alert for your reading pleasure.