With dwindling foreign reserves, the 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 says it is 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.
Also, in the circular signed by Director, Trade and Exchange Department, Dr O.S Nnaji authorised dealers are directed to desist from opening of forms M whose payment is routed through a buying company/agent or any other third- parties.
The measure is 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.