AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Form M is the import declaration a Nigerian buyer opens through its bank on the Single Window before goods are shipped; Sterling Bank describes it as mandatory for any import of physical goods, whatever the value and whether or not payment is involved. The US seller does not file it, but supplies what it is built on: a pro forma invoice (valid for at most 90 days), HS codes, and product certificates such as SONCAP, then a final invoice and transport documents that match it.
Why the buyer opens Form M
Nigeria controls imports and foreign exchange through the banking system. Before goods are shipped, the importer declares the import on an electronic Form M through an authorised dealer bank. The bank validates it and passes it to Nigeria Customs, which later uses it to generate the Pre-Arrival Assessment Report (PAAR) for clearance. Without an approved Form M, the buyer has no way to clear the goods properly, and in many cases cannot buy the foreign currency to pay you.
Valid for FX or not
Sterling Bank’s guidance distinguishes two kinds. A Form M "Valid for FX" means the buyer will pay you through the bank with foreign currency bought through the official market. "Not Valid for FX" means the buyer is paying from its own domiciliary funds. Either way the form is needed; the difference is how you are paid. Ask your buyer which they are opening, because it affects how and when your payment can be sent.
What the US seller provides
| Stage | What you send | Why |
|---|---|---|
| Before Form M | Pro forma invoice | The basis of the Form M; Sterling says it can be valid for at most 90 days |
| Before Form M | HS codes and full product descriptions | Used on the form and for duty assessment |
| Before Form M | SONCAP Product Certificate for regulated goods | SON says the PC is needed for Form M; banks accept only PCs from approved firms |
| Before shipment | Confirmation of the Form M number from the buyer | Quote it on your shipping documents |
| At shipment | SONCAP Certificate for the consignment, final invoice, packing list, bill of lading or airway bill | Used for PAAR and clearance; must match the Form M |
Other permits depend on the goods: Sterling lists NAFDAC approval for regulated products and NESREA approval for used items. The buyer will also arrange an e-insurance certificate for 110% of the invoice value.
Advance payment limits under the 2026 FX Manual
If your buyer is paying in advance through its bank, the CBN sets a limit. A June 2026 summary of the CBN’s Foreign Exchange Manual 2026 by Pavestones reports that advance payment for physical imports was raised from 15% to 30% of the FOB value. For a US seller, that means a buyer paying through the official channel may not be able to send more than that share before shipment. Agree terms that work within it, and ask your buyer’s bank to confirm the current position.
Worked example
Example only: a Lagos clinic orders $40,000 FOB of medical equipment. If the 30% limit applies, the most its bank can send in advance is $12,000. The remaining $28,000 is paid against shipping documents or on another agreed basis, such as a letter of credit. The $12,000 plus $28,000 equals the $40,000 total.
From Form M to PAAR
A 2021 legal overview describes the chain: the e-Form M is submitted to the authorised dealer bank, validated and sent to Nigeria Customs, which generates the PAAR so the importer can submit documents for assessment before the cargo arrives. Customs now runs this on its B’Odogwu system. In July 2025 Nigeria Customs told traders that, once a Form M is registered on B’Odogwu, they open it on their dashboard and use the "Create PAAR" button, and stressed that no fee is charged for migrating a Form M from the older NICIS II system.
Mismatches cause most delays at this stage: a final invoice with a different value, a changed product description or a different HS code from the Form M. Agree any change with your buyer before shipping so they can amend the Form M first.
If the order changes after Form M
Orders change: a product is out of stock, a price moves, the buyer adds a line. Any change to value, quantity, description or HS code should go back to the buyer before you ship, so its bank can amend the Form M. Issue a revised pro forma and wait for confirmation that the amendment is approved. Shipping goods that differ from the Form M leaves your buyer to explain the gap to Customs at clearance, which is slower and more expensive than fixing it beforehand.
What to check first
- Ask your buyer whether the Form M will be Valid or Not Valid for FX.
- Issue a pro forma that will still be valid when the Form M is processed.
- Get the SONCAP Product Certificate from an approved firm if the goods are regulated; see SONCAP for US exports.
- Do not ship until you have the approved Form M number.
- Keep descriptions, values and HS codes identical across every document.
The Nigeria-side detail is in Proforma, Form M, PAAR: the import documents banks ask for. See also what Nigerian customs needs.
Where Pryme fits
A US seller paid partly in advance and partly on documents needs to see each payment clearly. A Pryme Business Account opened from the US holds USD and NGN with local details, and invoicing lets you issue invoices that match your pro forma. Outside Nigeria, Pryme’s services are provided through regulated partners.
Questions people ask
Who opens Form M for imports into Nigeria?
The Nigerian importer, through an authorised dealer bank on the Single Window. The foreign seller provides the pro forma invoice and product certificates.
How long is a pro forma invoice valid for Form M?
Sterling Bank’s Form M guidance gives a maximum validity of 90 days.
What is the difference between Form M valid for FX and not valid for FX?
Valid for FX means the buyer will pay through the bank with foreign currency from the official market; not valid for FX means the buyer pays from its own domiciliary funds.
How much can a Nigerian buyer pay in advance?
A June 2026 summary of the CBN FX Manual 2026 reports advance payment for physical imports raised from 15% to 30% of FOB value. Confirm with the buyer’s bank.
Sources
- Sterling Bank: Form M frequently asked questions (modified Mar 2022) · accessed Oct 2026
- Mondaq (Resolution Law Firm): Import procedure in Nigeria, a brief overview (10 May 2021) · accessed Oct 2026
- Federal Ministry of Information: Nigeria Customs Service clarifies Form M migration from NICIS II to B'Odogwu (11 Jul 2025) · accessed Oct 2026
- Mondaq (Pavestones): Key regulatory update, the CBN Foreign Exchange Manual 2026 (24 Jun 2026) · accessed Oct 2026
- Standards Organisation of Nigeria: SONCAP approved fees (Aug 2022) · 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.