Form M is a mandatory documentation process put in place by the Central Bank of Nigeria (CBN), to monitor goods that are imported into the country, monitor allocation of Foreign Exchange for importation 1as well as enable collection of import duties where applicable.
The CBN guidelines relating to Form processing say, “Any person intending to import physical goods into Nigeria shall in the first instance process the E-Form M through any Authorized Dealer Bank irrespective of the value and whether or not payment is involved.”
Form M is initially valid for 180 days and can be extended for another 180 days by the Bank if there is need to.
Requirements for form M
- Formal request letter
- Proforma Invoice, which must be signed by the exporter
- Pre-requisite license from related government supervisory body e.g for electrical materials, a PHCN certificate/approval would be required. SONCAP or NAFDAC Certificate depending on the product.
- Goods to be imported must not be on CBN prohibition list.
- Insurance Certificate to cover 110% of the Free On Board (FOB) value.
- Customer or Dealer bank to log request on Single Window Portal.
- Authorized Dealer Bank to process the Form M and initiate clearance of the Pre-Arrival Assessment Report (PAAR).
Form Q is a special CBN FX import source window that allows Small and Medium Enterprises and Retail Businesses to source for a maximum of $20,000 dollars per quarter from CBN for importation. It can be obtained from commercial banks and any other FX authorized dealers.
SME’s account must have been in operation for 6 months in the bank. And must provide the bank account number of the supplier in the PFI for direct transfer of the FX request
Other Form Q requirements includes:
- Formal application letter which must include BVN, email address, annual turnover and details of what is to be imported.
- Proforma Invoice containing the details of the supplier, including bank account number.
- CBN Foreign Exchange Application Form
- Passport data page of Applicant
- Letter of request for FOREX Allocation.