Trade Service

Visible Transactions
Form M

Visible trade covers the import and export of physical goods. If you’re bringing goods into Nigeria, you’ll need to complete Form M. For exports, you’ll use Form NXP.

Form M is a mandatory statutory document that all importers must complete for the importation of goods into Nigeria. The life span of a Form M is 180 days (for general merchandise) and 365 days (for plant and machinery), after which an extension of 180 days (for general merchandise) and 365 days (for plant and machinery) can be granted on the Form M by the Authorised Dealer. Any further extension has to be approved by the Central Bank of Nigeria (CBN). It is therefore mandatory for all importers to complete and register Form ‘M’ with Authorised Dealers at the time of placing orders, whether the transaction is valid for foreign exchange or not. This is currently initiated electronically on the Trade Portal provided by the Central Bank of Nigeria in conjunction with the Nigeria Customs Service.

Apply for Form M

Letters of Credit

A Letter of Credit is one way to pay for goods you’re importing.

It is a written undertaking given by a Bank (issuing Bank) at the request of its customer (applicant), in which the Bank obligates itself to pay the exporter (seller/beneficiary) up to a stated amount within a prescribed time frame upon presentation of stipulated documents that conform to the terms and conditions of the documentary credit.

The major participants in an LC transaction are:

  • The Buyer/Importer/Applicant, i.e., the customer requesting LC to be issued.
  • The Seller/Exporter/Beneficiary, i.e., the Recipient of the LC.
  • The Issuing Bank, which gives the written undertaking.
  • Advising Bank/Seller’s Bank, i.e., the bank that advises the LC to the beneficiary.

The common types of LCs are:

  • Unconfirmed LC
  • Confirmed LC

Unconfirmed LC: An unconfirmed LC means only the issuing bank is responsible for payment.

Confirmed LC: A confirmed LC means both the issuing bank and another bank share responsibility for payment.

  • The seller may either request confirmation from a named bank or request confirmation from any reputable bank.
  • There’s a fee for confirmation, which can be paid by either the buyer or the seller, depending on what you agree.
  • If your LC is payable at sight, payment happens as soon as the documents are checked and approved. For deferred payment, the money is paid later, on the date you’ve agreed.
Bills for Collection (Documentary Collection)

Bills for Collection is another way to pay when you’re importing goods into Nigeria.

With Bills for Collection, banks help handle the paperwork between buyer and seller, following the exporter’s instructions. This can include:

  • Obtain payment or acceptance, or
  • Deliver documents against payment and/or acceptance, or
  • Deliver documents on other terms and conditions.

The main people involved in a Bill for Collection are:

  • The Seller/Exporter/Beneficiary
  • The importer’s bank/Collecting bank
  • The exporter’s bank/Remitting bank

Get Letter of Credit

Export

Form NXP is a mandatory statutory document that must be completed by all exporters for the shipment of goods outside Nigeria.

According to the CBN Circular reference TED/A-D/50/99, anyone who wishes to engage in export business must register with the Nigeria Export Promotion Council (NEPC). In addition, any export transaction should have the following documents:

  • A duly completed NXP Form (6 Copies)
  • A Proforma Invoice
  • Nigerian Export Promotion Council (N.E.P.C) Certificate.
  • Corporate Affairs Commission (C.A.C) Certificate
  • Request For Information (R.F.I) Form
  • A Contract agreement, where applicable.
  • Relevant Certificate of Quality issued by one or more government agencies.
  • Shipping documents, e.g., Bill of Lading, Commercial invoice, etc.
  • Other certificates, e.g., Form EUR-1 for goods being exported to Europe.

The shipping documents to be submitted to the bank by the exporter include:

  • Bill of Exit
  • Bill of lading
  • Final invoice
  • EUR certificate (A certificate issued after pre-shipment inspection, for goods going to Europe)
  • Commercial Invoice
  • Packing List
  • Certificate of Origin
  • Clean Certificate of Inspection (CCI)
Customs Duty Collection

To import goods, you’ll need to open a Form M, no matter how you’re paying. Customs duty is usually paid at the same bank where you opened your Form M.

You can pay customs duty using any of these options:

  • Cash
  • FCMB draft
  • The customer’s FCMB cheque
  • Other banks’ draft and cheque (receipt is issued after the draft/cheque has cleared)
  • Electronic transfers
  • NDCC (Negotiable Duty Credit Certificate)
Shipping Documents/Endorsements

We also help you collect the shipping documents you need for your imports.

Here’s how we can support you:

  • Collection of shipping documents on importation of goods to Nigeria from the exporter/exporter’s bank/correspondent bank.
  • Collection of all Exchange Control Documents from customers
  • Upload documents on the Central Bank of Nigeria Single Window Trade Portal for issuance of Pre-Arrival Assessment Report (PAAR)
  • Report (RAR)
  • Endorsement and release of shipping documents

We can also help you finance your exports through:

  • Pre-shipment via stock financing facility.
  • Post-shipment by way of Rediscounting and Refinancing facilities.

Streamline Your Export Process Today

Invisible Transactions

The processing of invisible transactions is also done by the Foreign Operations Unit. Form A is a mandatory statutory document to be completed by all individuals for payment of services outside Nigeria.

Invisible transactions are essentially payment for services i.e. there are no tangible goods involved. There are different types of invisible transactions. Some of which are:

  • Course Fees
  • Dividend Remittances
  • Payment for Medical Services outside Nigeria
  • Technical Service Fee Remittance
  • Personal Home Remittance
  • School Fees Remittance, etc.

Documentation requirements for invisible transactions are as listed in the Foreign Exchange Manual.

Start Seamless Processing for Invisible Transactions

Terms and Conditions
  • We can only guarantee contracts that are genuine and valid.
  • If a lien is placed on your advance payment, we’ll let you know what that means for you.
  • Guarantees are available for up to one year.
  • If you’re applying for a performance guarantee, please be clear about the work you’ll be doing.
Trade Service Desk

Our trade service team is here to support you. We offer advice and training to help you get the most out of our trade products.

All inquiries should be forwarded to allstaffofits@fcmb.com.

To get started with our trade services, you’ll need an FCMB business account. If you don’t have one yet, you can open one today.