Destination Payment for all Forms M, Letters of Credit and Other Forms of Payment

CENTRAL BANK OF NIGERIA Corporate Head Office Central Business District P.M.B. 0187, Garki, Abuja, FCT TRADE AND EXCHANGE DEPARTMENT 09 46237804 09 46237802 E-mail address: ted@cbn.gov.ng TED/FEM/FPC/GEN/01/005 24 August 2020 TO: ALL AUTHORISED DEALERS/ GENERAL PUBLIC DESTINATION PAYMENT FOR ALL FORMs M , LETTERS OF CREDIT AND OTHER FORMS OF PAYMENT.

As part of continued efforts by the Central Bank of Nigeria to ensure prudent use of our foreign exchange resources and eliminate incidences of overinvoicing, 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 companylagent or any other thirdparties.

Accordingly, all Authorised Dealers are hereby 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. This directive is 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 Authorized Dealers shall use this mechanism to verify quoted prices before Forms M are approved.

L BANK O
Please ensure strict compliance.

IR. O.S. NNAJI
DIRECTOR
TRADE & EXCHANGE DEPARTMENT