By Divine Nwaoguji-Nweke
The Central Bank of Nigeria, CBN, has directed authorised dealers to desist from opening Form M whose payments are routed through buying agents.
The CBN explained that the move was part of continued efforts to ensure prudent use of foreign exchange resources.
Form M is a mandatory statutory document to be completed by all importers for importation of goods into Nigeria.
The Bank in a statement released on Monday, said, that “It will eliminate incidences of over-invoicing, transfer pricing, double handling charges, and avoidable costs that are ultimately passed to the average Nigerian consumers.”
The Bnak said following its position on the implications, “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.”
The CBN further said that all authorised Dealers would be requested to only open Forms M for Letters of Credit, Bills for collection and other forms of payment in favour of the ultimate supplier of the product or service.
The apex Bank further noted that adherence to the new directive is with immediate effect.
The CBN said that inline with global practise, it will immediately introduce a Product Price Verification Mechanism to forestall over-pricing and mispricing of goods and services imported into country.
The Bank said the Product Price Verification Mechanism would be used by authorised dealers to verify quoted prices before Forms M are approved