The Central Bank of Nigeria (CBN) has extended the timeline for the issuance of letters of credit and the registration of Form M and NXP due to the ongoing foreign exchange scarcity in the country. Previously, the timeline for the issuance and management of letters of credit was 24 hours according to the approved 2020 service charter of the CBN. However, the newly approved 2023 service charter shows that the timeline is now five working days. Similarly, the timeline for the registration of Form M and NXP has been extended from 24 hours to two working days.
This new directive is expected to boost local and international trade, especially the import of goods and services in the country. It is necessary because foreign suppliers have started rejecting letters of credit from Nigerian businesses. 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. Similarly, all exporters are required by law to fill out the Nigeria Export Proceed Form (NXP) before sending goods outside of the country.