Good news for importers as CBN extends timeline for issuance of letters of credit processing
Following the persistence of foreign exchange scarcity in the country, the Central Bank of Nigeria (CBN) has extended the timeline for the issuance of letters of credit from 24 hours to five working days.
Similarly, the apex bank extended the timeline for the registration of Form M and NXP from 24 hours to two working days
Previously, according to the approved 2020 service charter of the CBN, the timeline for the issuance and management of letters of credit was 24 hours.
However, the newly approved 2023 service charter shows that the timeline is now five working days
Similarly, CBN extended the timeline for the registration of Form M and NXP from the previous 24 hours to two working days.
This new directive will boost local and international trade, especially the import of goods and services in the country, with reports stating that foreign suppliers have started rejecting letters of credit from Nigerian businesses.
Also, to import goods denominated in foreign currency into Nigeria through the CBN Single window, all importers are required by law to fill out Form M. All exporters are required by law to fill out the Nigeria Export Proceed Form (NXP) before sending goods outside of the country
