In Nigeria, business owners and entrepreneurs have had a hard time getting the much-needed leverage with their counterparts/suppliers/partners in other countries because the dollar is expensive to the Nigerian currency – Naira.The CBN took note of this in 2017 and decided to intervene with Form Q – which provides the avenue to get cheaper US Dollars when compared to the parallel or ‘black market’ rates.
Importation of goods, machinery or even raw materials for production or sales from the international market requires United States Dollars. Why? The US Dollar has since become a global currency. It has become the base currency in many transactions across the world, rightly so.
This article will show us a few things. What is Form Q? how to apply for the CBN Form Q, the required documents and the dynamics of the processing of the Form Q.
What is SME Form Q?
CBN Form Q is a fund set aside for Micro, Small and Medium Scale Enterprises (MSMEs) owned and operating in Nigeria to finance importation of goods from abroad. Form Q is accessible in commercial banks. Form Q applicants have access to only $20,000 per quarter.
Why do I need it?
Have you been asking yourself ‘why do I need Form Q?’
Form Q lets Nigerian importers buy forex at a cheap price in the official bank/CBN window to be able to afford the goods. With a cap of $20,000/quarter, an SME can tap into this fund to pay for their imports.
So who can use the Form Q? Simple – the small and medium scale enterprises who must import part/whole of their business materials from abroad.
Requirements for Applying for the CBN Form Q
First and foremost, the CBN Form Q is a fund only accessible to SMEs. What are the other requirements one must meet to be able to tap into this ‘cheaper Dollars’? Well, here they are:
- You must have an open current account in any of the Nigerian commercial banks
- The director(s) must be of Nigerian descent, or permitted expatriates living in Nigeria
- Proforma invoice
- Product Certificate
- Form M (not all banks – check here to see how to process your e-Form M)
- Formal application for Form Q (See sample)
- Form Q Request letter (see a template)
- Data page of the international passport of the applicant
How to Apply for the CBN Form Q
Here is a step-by-step guide on how to make a request for Form Q in your bank:
- Fund your account with Naira equivalent of the fx
- Visit your bank
- Write your Form Q request letter (see a template)
- Fill the Form Q Application form (See sample)
- Provide the Proforma Invoice (PFI)
- Once this is done, you just sit back and let your bank do the rest
Tags: what is some form q, what is form q used for nigeria, is form m required for form q, what are 41 banned items, form q sample, how to fill form q