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The Central Bank of Nigeria (CBN), has announced the introduction of Form X to facilitate easy access to foreign exchange by Small and Medium Enterprises. According to a statement released today by Isaac Okorafor, Acting Director, Corporate Communications Department at the CBN, Form X is designed to increase forex liquidity and ease the documentation challenges usually experienced by SMEs.
 
Okorafor said SMEs applying for forex are required to complete the Form X, attach an application letter, a beneficiary invoice and bank account details. The objective of the CBN is to ensure seamless service for SMEs whose forex needs for either ‘visible’ or ‘invisible’ transactions total $10,000 or less.

Previously, manufacturers, airlines and entities filing request for forex in large quantity use Form M, while those requesting forex for invisibles use Form A.

As part of its efforts to improve forex liquidity and boost business growth for SMEs, the CBN opened a special forex window last week to enable businesses in this category import eligible finished and semi-finished products at a sum not exceeding $20,000 per quarter of each year.

“The special interventions were necessitated by findings that a large number of SMEs were being crowded out of the forex space by large firms,” Okorafor said.

Enterprises that employ between 10 and 199 workers and have an asset base of about N5 million to N500 million, will be assisted through forex interventions by the CBN under this special window for import transactions within the approved threshold.

The CBNs special interventions also extend to the Bureau de Change (BDC) operators whom the apex bank has increased their forex allocation to $20,000 a week, from the previous sum of $10,000 per week. The Leadership newspaper, however, reports that BDCs continue to clamour for further increase of weekly allocations to $50,000 by the CBN.

In his statement, Okorafor reiterated the apex bank’s determination to ensure adequate supply of forex for genuine transactions by SMEs.