TUE, AUG 25 2020-theG&BJournal– The Central Bank of Nigeria (CBN) has ordered Forex Authorized Dealers to desist from opening Forms whose payments are routed through a buying company/ agent or any other third-party with immediate effect.
The apex bank in a circular Monday, said dealers are only allowed to open Forms M for letters of credit, bills for collection and other forms of payments in favour of the ultimate supplier of the product or service.
The new directive according to the CBN, is to ensure prudent use of the country’s foreign exchange resources and eliminate incidences of over-invoicing, transfer pricing, double handling charges, and avoidable costs that are ultimately transferred to the average Nigerian consumer.
In addition, the apex bank says it is introducing a Product Price Verification Mechanism (PPVM) 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,’’ the CBN said.
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