CBN bars agents from buying forex routed through Form M

The Central Bank of Nigeria (CBN) has removed buying agents/companies or any third parties from accessing its SMIS forex window through FORM M forex purchases. In a circular dated August 24, the apex banks said “ as part of continued efforts by CBN to ensure prudent use of our foreign exchange resources and eliminate incidences of over invoicing, transfer pricing double handling charges, and avoidable costs that ultimately passed to average Nigerian consumers  Authorised Dealers are herby directed to desist from opening of Form M whose payment are routed through a buying company/agent or any other third parties”.

“Accordingly in line with  best practices around the world, the CBN will be immediately introducing a product pricing verification mechanism to forestal over pricing and or misplacing of goods and services imported into the country. All authorised dealers shall use shall use this mechanism to verify quoted prices before forms M are approved”.  By this circular the CBN has effectively eliminated third parties or middlemen from transacting in forex deals in its official SMIS window.