The Central Bank of Nigeria, CBN, has eliminated Third Parties as it announced that it will no longer approve foreign exchange for M applicants who go through company or agents.
O.S. Nnaji, the director of trade and exchange for the apex bank, said that it will henceforth pay the forex directly to the provider of goods and services instead of paying to a third party.
“As part of continued efforts by the Central Bank of Nigeria to ensure prudent use of foreign exchange resources and eliminate incidences of over-invoicing, transfer pricing, double handling charges, and avoidable costs 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,” the memo read.
“All authorised dealers are hereby requested to only open form 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 bank said the “directive is with immediate effect”.
The bank added that global practices in terms of purchase of goods and services will now be adhered to.
“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 country,” the bank added.
“All authorised dealers shall use this mechanism to verify quoted prices before Forms M are approved.”
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