CBN bans issuance of forex to 3rd parties
CBN says it will immediately introduce a product price verification mechanism.
CBN governor, Godwin Emefiele [Philip Ojisua/AFP via Getty Images]
Recommended articles
The Director of the CBN's Trade and Exchange Department, Dr O.S. Nnaji, in a statement on Monday, August 24, 2020, warned authorised dealers to not open Forms M for such applications effective immediately.
He said the measure is part of the apex bank's efforts to ensure the prudent use of foreign exchange resources, and eliminate incidences of over-invoicing, transfer pricing, double handling charges, and avoidable costs that are ultimately passed on to Nigerian consumers.
"Accordingly, all authorised dealers are hereby requested to only open Forms M for letters of credit, bills for collection and other forms of payment in favour of the ultimate supplier of the product or service," the memo read.
ADVERTISEMENT
Nnaji further announced that the apex bank will immediately introduce a product price verification mechanism to prevent mispricing of goods and services imported into Nigeria, in line with global best practices.
He said all authorised dealers are to use the mechanism to verify quoted prices before Forms M are approved.
Nigeria has recently been hit hard by the scarcity of hard currency caused by the global slump in the price of crude oil, the country's top foreign exchange earner.
The CBN has struggled to keep up with demand, forcing the apex bank to maintain a stranglehold to prevent further depletion of foreign exchange reserves in the country.
JOIN OUR PULSE COMMUNITY!
ADVERTISEMENT
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.ng
Recommended articles
South Korea eyes one of Nigeria’s precious minerals
Elumelu applauded by distinguished leaders for youth empowerment in Africa
AU's 2063 agenda at risk due to cybercrime
Burna Boy's South Africa concert has been cancelled, here’s why
AfDB, Google partner to advance digital transformation in Africa
Top 10 African countries with the highest food inflation rates
List of African countries and how much of their salaries they spend on iPhones
Do you know what leads to aircraft fuel dumping in the sky? Here is why
Ghana is looking to supply Nigeria with its electricity needs following power grid shutdown
Pulse Sports
Super Falcons' Michelle Alozie drops football hot take
Kane defends Harry ‘One of the best defenders in history’ Maguire, calls for end to scapegoating
Provedel: 4 goalkeepers who have scored in the Champions League including Vincent Enyeama
Andre Onana: Critics of the Manchester United goalkeeper are missing the bigger picture
100 not out: Lewandowski moves closer to Messi and Ronaldo with century of European goals
Is Victor Osimhen in for a troubled season under Rudi Garcia?
Pep Guardiola laughs off Man Utd’s title challenge
Braga vs Napoli: Victor Osimhen aiming to break Obafemi Martins’ 13-year-old UCL record
Victor Boniface girlfriend: 8 Interesting things to know about Rikke Hermine
ADVERTISEMENT
