AI agents for business finance: what they can and can't do
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Part of the guideDoing business with Africa: paying and getting paid in Nigeria
The short answer
Form M is the declaration a Nigerian importer files through its bank before paying a foreign supplier for physical goods; Form A is the application to buy foreign currency for services and other "invisibles" such as consulting, software, royalties and fees. Since the CBN's Foreign Exchange Manual took effect on 1 June 2026, Form A is no longer required for payments funded from a payer's own domiciliary account, but bank-sourced FX still needs it.
If you sell to a Nigerian business and your invoice sits unpaid for a week, the reason is often a form. Nigeria runs a documented foreign exchange system: before a bank releases dollars, pounds or euros to pay a foreign supplier, it records why. Form M and Form A are the two records that matter most for foreign sellers. This article explains both. The parent guide on doing business with Nigeria and Africa puts them in the context of FX, tax and compliance.
What each form is for
- Form M
- The import declaration for physical goods. The Nigerian importer files it through its bank before shipment and before buying FX. It links the payment to a specific consignment, so customs and the Central Bank of Nigeria (CBN) can match money going out with goods coming in.
- Form A
- The application to buy FX for "invisibles": services and other non-goods payments, such as consulting, software licences, royalties, management fees, school fees and travel. It is filed through the payer's authorised dealer bank.
- Form NXP
- The export declaration for goods leaving Nigeria. It tracks that the export proceeds come back. Under the 2026 Manual, processing it is free.
Both Form M and Form A are processed by authorised dealers, which are banks licensed by the CBN to deal in foreign exchange. Your client cannot file them on your behalf without its bank, and you cannot file them at all. What you control is the paperwork you give your client.
What the 2026 FX Manual changed
The CBN launched the fourth edition of its Foreign Exchange Manual on 16 May 2026, and it took effect on 1 June 2026. It replaced the 2018 edition. The changes that touch Form A and Form M are these:
| Area | Before (2018 Manual) | From 1 June 2026 |
|---|---|---|
| Form A for payments from a domiciliary account | Generally required | Not required for remittances funded from the payer's own domiciliary balance |
| Direct transfers from a domiciliary account | Trade documents expected | Up to $10,000 a day by telegraphic transfer without full trade documentation; banks still record the purpose |
| Advance payment for imports | Up to 15% of FOB value | Up to 30% of FOB value |
| Form NXP processing | A fee could apply | Free |
The Manual also set new penalties: a bank that processes FX transactions without adequate documents faces a ₦100 million fine plus ₦10 million for each affected transaction. That penalty is the change that shapes behaviour most. Banks that process transactions without adequate documents now face heavy fines, so expect your client's bank to ask for more paperwork on bank-sourced FX, even as self-funded payments get easier.
One more change is worth knowing. The Manual broadens the definition of an authorised dealer to any financial institution the CBN licenses to deal in FX, not only banks. Over time that may widen the set of firms that can process these transactions for your client.
What your Nigerian client's bank will ask for
For services (Form A)
- Your invoice: your legal name and address, a contract or purchase order reference, a clear description of the service, the period covered, the amount and full bank details including SWIFT/BIC.
- The signed contract or service agreement.
- Evidence that the service was delivered, such as a completion note, report or acceptance email.
- Evidence that Nigerian tax has been dealt with: typically withholding tax deducted and, where relevant, VAT self-accounted. Our article on withholding tax for non-resident companies explains the deduction.
For goods (Form M)
- A proforma invoice, issued before shipment, that matches the final commercial invoice.
- The Form M number, which should appear on your shipping documents.
- Bills of lading or airway bills, packing lists and certificates the product category requires.
- For advance payments, a clear statement of the percentage of free-on-board value being paid up front, now capped at 30%.
A worked example: how the form affects your payment date
A Manchester software firm invoices a Lagos logistics company $20,000 for a year's licence and set-up.
- If the client pays from its own domiciliary balance. Under the 2026 Manual it does not need Form A. Its bank can send the wire once the purpose is captured. You might see the money in two to three working days. If the client splits the payment, up to $10,000 a day can move by direct transfer without full trade documents.
- If the client must buy dollars from its bank. The client converts naira to dollars on the official market. Its bank processes Form A, checks your invoice, contract and the tax position, then sources the FX. A missing contract reference or a vague description such as "services" can send the file back. Allow one to two weeks.
- Withholding tax. At the published 10% rate for technical and professional fees paid to non-resident companies, the client deducts $2,000 and you receive $18,000, less bank charges. Agree in advance whether your price is gross or net of that deduction.
The practical point: ask your client early whether it holds a domiciliary balance. If it does, your payment can move faster and with less paperwork.
Common reasons payments stall
- The invoice name differs from the name on the contract or the bank account.
- The service description is too vague for the bank to classify the purpose.
- The proforma invoice and final invoice do not match on quantity or value.
- The tax position is unclear, so the bank holds the file.
- Your bank details changed after the Form A or Form M was filed. Treat any such request from your own side with care too, because changed bank details are a common fraud signal.
If a payment stalls, ask your client which document the bank queried. Fixing one line on an invoice is quicker than chasing. The Nigeria business payments guide has a pre-payment checklist, and our explainer on the official NFEM exchange rate covers how your client's bank prices the FX.
Where Pryme fits
Form A and Form M are filed through your client's authorised dealer bank, so the work on your side is the paperwork. One general way to need them less: if a Nigerian client pays you in naira to an account in Nigeria, the client does not buy foreign currency, so no Form A arises, and the conversion happens on your side. A business multicurrency account holds NGN, USD, GBP and EUR in separate balances, and Swap shows the rate before you confirm, holds it for about 30 seconds and puts any fee on its own line. Pryme Financial Ltd is a technology company, not a bank. In Nigeria, naira deposits are held by Solid Allianze Microfinance Bank Ltd, licensed by the CBN and insured by the NDIC up to the applicable limit; outside Nigeria, activities are carried out through regulated partners. A business account can be opened from any country; check which local account details are available when you apply.
Invoicing is available from the same account. Whatever tool you use, keep each withholding-tax receipt with the invoice it relates to, because that is the tax evidence banks ask for.
Questions people ask
Is Form A still required in Nigeria in 2026?
It depends on where the money comes from. Under the CBN's 2026 Foreign Exchange Manual, Form A is not required for remittances funded from the payer's own domiciliary account. Payments that need FX bought from a bank still go through the Form A process.
What is the difference between Form M and Form A?
Form M covers imports of physical goods and is filed before shipment. Form A covers services and other invisible payments, such as consulting, licences, royalties and fees. Both are processed by the payer's authorised dealer bank.
How long does Form A approval take?
There is no single published timeline. With a complete invoice, contract and tax evidence it can be quick, but sourcing FX can add days. Payments from a client's own domiciliary balance avoid the Form A step.
Can a foreign supplier file Form M?
No. Form M is filed by the Nigerian importer through its bank. The foreign supplier's role is to provide a proforma invoice and shipping documents that match it exactly.
How much can a Nigerian importer pay in advance?
Under the 2026 Manual, advance payment for imports can be up to 30% of the free-on-board value of the goods, up from 15% under the 2018 Manual.
Sources
- Mondaq: The CBN Foreign Exchange Manual 2026 · accessed Oct 2026
- Mondaq: The CBN's 2026 Foreign Exchange Manual: key reforms and practical implications · accessed Oct 2026
- Nairametrics: CBN launches 4th edition FX Manual (May 2026) · accessed Oct 2026
- The Nigeria Lawyer: domiciliary account holders get unrestricted access (June 2026) · accessed Oct 2026
- Afriwise: Key insights on the CBN Foreign Exchange Manual 2026 · accessed Oct 2026
- PwC Tax Summaries: Nigeria corporate withholding taxes · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.