The Central Bank of Nigeria (CBN) has directed the Authorised Dealers to desist from opening of Forms M whose payments are routed through a buying company/agent or any other third party.
According to a statement issued on Monday by the Director, Trade and Exchange Department, CBN, Dr. O.S. Nnaji, the development was part of the continued efforts by the Central Bank of Nigeria to ensure prudent use of the nation’s foreign exchange resources and eliminate incidences of over-invoicing, transfer pricing, double handling charges and avoidable costs that were ultimately passed to the average Nigerian consumers.
The statement requested all Authorised Dealers to only open Forms M for Letters of Credit, Bills for collection and other form of payment in favour of the ultimate supplier of the product or service adding that this directive was with immediate effect.
“Additionally, in line with best practices around the 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 country. All Authorised Dealers shall use this mechanism to verify quoted prices before Forms M are opened”, the statement added.
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