The Central Bank of Nigeria has directed Authorized Dealers to desist from opening of Forms M whose payment are routed through a buying company/agent or any other third-parties.
In a Circular dated August 24, 2020, CBN noted that;
“As part of continued efforts by the Central Bank of Nigeria ensure prudent of our foreign exchange resources and eliminate incidences of invoicing, transfer pricing and double handling charges, and avoidable cost that are ultimately passed to the average Nigerian consumers, Authorised Dealers are hereby directed to desist from opening of Forms M whose payment are routed through a buying company/agent or any other third-parties.
“Accordingly, all Authorised Dealers are hereby requested to open Form M for Letters of Credit, Bills for collection and other form of payment in favour of ultimate supplier of the product or service. This diredive is with immediate effect.
“Additionally, in line with best practices around tha world, the CBN will be immediately introducing a Product Price Verification Mechanism to forestall over-pricing and/or mispricing of goods and services imported into the county. All Authorized Dealers shall use this mechanism to verify quoted prices before Forms M are approved.
“Please ensure strict compliance.”