With dwindling foreign reserves, Central Bank of Nigeria (CBN) on Monday announced that it will henceforth conduct price checks before approving Form M on foreign exchange demands.
In a circular addressed to authorised foreign exchange dealers titled: ‘General Public Destination Payment for all forms M, Letters of Credit and Other Forms of Payment,’ CBN said it was in line with international best practices.
“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 approved.”
Also, the circular signed by Director, Trade and Exchange Department, Dr O S Nnaji, authorised dealers were directed to desist from opening of Forms M whose payment is routed through a buying company/agent or any other third- parties.
The measure was “part of continued efforts by the Central Bank of Nigeria to ensure prudent use of our 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.”