Your Africa Trade Partner
With the start of AfCFTA (African Continental Free Trade Area), UBA is positioned to support global trade.
Facilitating Global Trade
International Trade is an ever-evolving business and we understand the complexities of the global market. Our products and services have been designed to ease your banking needs at any of our locations in 20 African countries, the U.K, France, the U.S.A, and the U.A.E.
Form M
Form M is a required document for importers, valid for 360 days (general goods) or 720 days (plant/machinery).
Letter of Credit
A Letter of Credit is an agreement where the issuing bank guarantees payment to exporters as requested by the customer.
Bill for Collection
Bills for Collection involves banks handling documents to obtain payment, or deliver documents under agreed terms.
Form Q
A Form Q enables Small and Medium Enterprises (SMEs)to access $20,000.00 quarterly to pay for imports.
Form A
Form A allows customers to buy funds for eligible services at the CBN or interbank rate.
Export
Exporters must register with the Nigerian Export Promotion Council and complete an NXP form to export goods from Nigeria.
CBN Trade Policies & Circulars
As your trade partner, we ensure our processes are in line with CBN policies that guide trade transactions. Please read some of the policies and circulars:
Forms A & M
Is Form M mandatory for the importation of goods into Nigeria?
Yes, it is mandatory.
How can Form M be accessed?
Form ‘M’ can be accessed online via a portal called the Federal Government Single Window for Trade.
What happens after the importer submits a Form M application?
A Form M number is generated and reviewed by the Nigerian customs service to check for errors before it is validated for processing.
Is it possible to amend Form M after registration?
Yes. Changes can be made to fields like country of origin/supply and port of discharge after Form M acceptance.
Is Form M required for transfers of $10,000 and below, where the source of funds is cash?
Yes. Form M is required where the purpose of the transfer is the purchase of goods.
Do I need Form A for International school fees payment, Personal Upkeep or Mortgage?
Form A is NOT required when the customer is utilizing his personal funds sourced from the parallel market (black market) and the amount meets the threshold for cash transfers.
Can I use one (1) Form M for multiple FCY transfers?
Yes. You can open one (1) Form M and use it in multiples for FCY payment as long as the items are captured in the Form M and the total transfer amount does not exceed the amount on the Form M.
What is the maximum amount for Letters of Credit?
There is no limit for Letters of credit.
What is the validity of form NXP?
The validity of form NXP is 6 months from the date of registration and subject to renewal for 3 months by the bank. Further extension will be approved by Central Bank of Nigeria.
Are goods for export in Nigeria subject to inspection?
Yes, all goods for export (oil and non-oil) are subject to inspection.
What are the 42 items not valid for Forex by CBN?
Rice, Cement, Margarine, Palm Kernel/Palm Oil Products/Vegetable Oils, Meat and Processed Meat Products, Vegetables and Processed Vegetable Products, Poultry – Chicken, Eggs, Turkey, Private Airplanes/Jets, Incense, Tinned Fish in Sauce (Geisha)/Sardines, and Fish, Cold Rolled Steel Sheets, Galvanized Steel Sheets, Roofing Sheets, Wheelbarrows, Head Pans, Metal Boxes and Containers, Enamelware, Steel Drums, Steel Pipes, Wire Rods (Deformed and Not Deformed), Iron Rods and Reinforcing Bars, Wire Mesh, Steel Nails, Security and Razor Wire, Wood Particle Boards and Panels, Wood Fiber Boards and Panels, Plywood Boards and Panels, Wooden Doors, Furniture, Toothpicks, Glass and Glassware, Kitchen Utensils, Tableware, Tiles – Vitrified and Ceramic, Textiles, Woven Fabrics, Clothes, Plastic and Rubber Products, Cellophane Wrappers, and Finished Aluminum Cans, Soap and Cosmetics, Tomatoes/Tomato Pastes, Euro Bond/Foreign Currency Bond/Share Purchases, Fertilizers.
For what type of goods do you open Letters of Credit?
Letters of Credit are opened for all goods provided they are not listed under the import prohibition list published by regulatory authorities.
AfCFTA
What is AfCFTA
AfCFTA, the African Continental Free Trade Area consisting of 54 member countries is one of the largest free trade areas since the World Trade Organisation, have committed to a phased elimination of tariffs on most goods and services, depending on each country’s level of development or the nature of the products involved. The overall goal of AfCFTA is to enhance the competitiveness of African Industries globally by offering increased market access, leveraging economies of scale, and optimizing resource allocation To enhance the competitiveness of African Industries globally by offering increased market access, leveraging economies of scale, and optimizing resource allocation.
Who operates AfCFTA?
AfCFTA mandate is being executed by the AfCFTA a secretariat in Accra, Ghana and the secretariat works in partnership with Commercial Banks, Government Agencies and Development Finance Institutions like United Bank for Africa and Afreximbank.
When was it launched?
The Agreement establishing the AfCFTA was signed on 21st March in Kigali, Rwanda. The AfCFTA entered into force on 30th May 2019 and the operational Instruments governing trade under the AFCFTA regime were launched in Niamey, Niger in July 2019. Trading under the AfCFTA regime commenced on 1st January 2021.
What is the purpose of AfCFTA
The AfCFTA aims to create a single market for goods and services and a liberalised market for goods and services to enhance t he movement of capital and natural persons. it is also to aid in the movement of goods and services across the African continent without restrictions.
What are the key benefits of AfCFTA?
The AfCFTA promises broader and deeper economic integration and would attract investment, boost trade, provide better jobs, reduce poverty, and increase shared prosperity in Africa.
- Africa could see foreign direct investment (FDI) increase by between 111 percent and 159 percent under the AfCFTA.
- Inflows of FDI attracted by the AfCFTA would bring jobs and expertise, build local capacity, and forge connections that can help African companies join regional and global value chains.
- The AfCFTA can bring higher-paid, better-quality jobs, with women seeing the biggest wage gains.
- Wages would rise by 11.2 percent for women and 9.8 percent for men by 2035, albeit with regional variations depending on the industries that expand the most in specific countries.
- If AfCFTA’s goals are fully realized, 50 million people could escape extreme poverty by 2035, and real income could rise by 9 percent.
- Under deep integration, Africa’s exports to the rest of the world would go up by 32 percent by 2035, and intra-African exports would grow by 109 percent, led by manufactured goods.
How AfCFTA operates in a country or region?
- Trade Liberalisation: AfCFTA aims to progressively eliminate tariffs and non-tariff barriers to trade in goods and services.
- Market Access: Member countries grant each other preferential market access, promoting intra-Africa trade
- Rules of Origin: AfCFTA establishes rules of origin to determines the eligibility of products for preferential treatment.
- Customs Cooperation: Member countries coordinate customs procedures and cooperate on issues related to customs to facilitate the movement of goods.
- Services and Investment: AfCFTA covers not only goods but also services and investment.
What are the obligor limits on the loans?
Asset Finance Loan : equivalent of $150,000 in local currency Working Capital Loan: equivalent of $150,000 in local currency.
What type of payments are supported on AfCFTA?
The payment methods supported within the African Continental Free Trade Area (AfCFTA)can vary by country and business. Common methods include bank transfers, credit/debit cards, and mobile money. Specifics depend on the financial infrastructure and regulations of each participating nation.It’s advisable to check with local authorities or the involved businesses for the most accurate and up to date information.
$6Bn UBA/AfCFTA Signed MOU: What does this entail?
By the agreement, UBA and AfCFTA agreed to promote the development of SMEs operating in Four sectors under the 1st phase of the partnership which are largely import dependent by providing technical and financing solutions for intra-African/domestic alternatives. These economic sectors are Agro-processing, Automotive, pharmaceuticals, Transport and Logistics UBA will go beyond just financing to provide non-financial services to these SMEs to develop the capacity for growth across the 20 African countries that we are present and build sustainable business practices. We shall also be leveraging technology to deliver our financing activities to the beneficiaries and this platform provides us with a unique opportunity to stimulate the development of the continent as Africa’s Global Bank.
What are the loans we have in AfCFTA?
- Asset Finance Loan (disbursed as Term Loan for the purchase of operational assets for the direct use of the business).
- Working Capital Loan(disbursed loans in the form of Overdrafts & Short-Term Loans for a tenure not exceeding 12 months).
What are the primary target sector for loan?
This product is targeted at African and Africa-based SMEs in the Agro-processing, Automotive, Pharmaceuticals and Transport and Logistics as well as other sectors as deemed fit by UBA in consultation with AfCFTA Secretariat to facilitate the implementation of the AfCFTA Agreement and its objectives.
What is the repayment process?
From daily /weekly business proceeds and other business cashflows.
What are AfCFTA private sector engagement strategies
- Public-Private Dialogue: Establishing regular and structured dialogues between the public and private sectors to discuss challenges, opportunities and policy consideration.
- Access to Finance: Facilitating access to finance for small and medium-sized enterprises (SMEs) to help them participate more actively in intra-Africa trade.
- Trade Facilitation Support: Working on initiatives to simplify customs procedures, reduce npn-tariif barriers, and enhance the ease of doing business across borders.
- Patrnerships and Collaboration: Encouraging partnerships between governments, private sector entities, and relevant stakeholders to foster collaboration in trade-related activities.
- Sector-Specific Initiatives: Developing strategies tailored to specific industries or sector to address their unique challenges and opportunities within the AfCFTA framework.
Can SME players outside the four sectors apply for the loan?
Yes. However, they need to meet the risk assessment criteria of the product.
Form M
Form M is mandatory document to be completed by importers for the importation of goods. Importers are required to complete the form on the Federal Government Single Window for Trade, www.trade.gov.ng.
The validity period of a Form M document is 360 days (for general merchandise) and 720 days (for plant and machinery); extensions of 180 days (for general merchandise) and 360 days (for plant and machinery) can be granted by the bank. Further extensions are approved by the Central Bank of Nigeria (CBN).
Requirements:
- Pro-forma invoice.
- Insurance certificate.
- Regulatory Certificate per the item of import e.g. NAFDAC permit, DPR certificate, SONCAP Product certificate, NESREA.
Letter of Credit
A letter of credit (LC) is an agreement that is irrevocable and thereby constitutes a definite undertaking of an issuing bank to honour payments requested by customers to exporters.
Requirements:
- Registered Form M.
- Duly completed Letter of Credit application form.
- Customer’s instruction to buy Foreign currency.
Bill for Collection
Bills for Collection is the handling of documents (financial and/or commercial) by banks in line with the instructions received from exporters to:
- – Obtain payment and/or acceptance, or
- – Deliver documents against payment and/or acceptance
- – Deliver documents on other terms and conditions.
Requirements:
- Registered Form M.
- Customer’s instruction to buy foreign currency.
- Shipping Documents:
- Original Clean /Shipped on Board Bill of Lading /Airway Bill/Road Waybill.
- Certificate of Origin.
- Packing list.
- Commercial Invoice.
- Product Certificate.
- Single Goods Declaration (SGD) form.
- Accepted Bill of Exchange.
- Assessment Notice.
- Exit Note.
- PAAR (Pre – Arrival Assessment Report)
Form Q
A Form Q enables Small and Medium Enterprises (SMEs)to access $20,000.00 quarterly to pay for imports.
Requirements:
- Duly completed form Q.
- Registered form M.
- Customer’s instruction to buy Foreign currency.
- Pro-forma invoice.
- Certificate of Incorporation/Registration.
Form A
A Form A allows customers buy funds at the CBN or interbank rate to make payments for eligible services as predetermined by the Foreign exchange manual.
The Central Bank of Nigeria (CBN) has introduced an electronic version of “Form A”, called “e-Form A”. It is designed to replace the hard copy you receive at branches. You can now apply for Form A transactions online on the Trade Monitoring System portal www.tradesystem.gov.ng.
Payments for services include the following:
- Medical Services.
- School Fees (tuition) and living allowances.
- Conferences, Seminars and Training.
- Correspondence courses.
- Copyright, Patent, Franchise and Royalties.
- Consultancy fees.
- Management and Technical service.
- Membership, subscription and examination fees.
- Re-payment for external loans.
- Monthly Personal Home Remittance.
Export
Customers willing to commence the exportation of goods are required to register with the Nigerian Export Promotion Council.
To export good out of Nigeria, an NXP form is a mandatory document to be completed by all exporters.
Requirements:
- Certificate of Incorporation.
- Valid NEPC (Nigerian Export Promotion Council) certificate.
- Pro-forma invoice for export item which must not be on the prohibition list. See www.trade.gov.ng.
- Tax Identification Number (TIN).
- Export Proceeds Domiciliary Account.
- Duly completed Form NXP on TRMS (Trade Monitoring System) - www.tradesystem.gov.ng.
Trade services enquiries
For more information about Trade Services,
- Visit a UBA branch near you
- +234 01-2807-300
- +234 01-2807-228
- +234 09062800579
- +234 09062800580
- tradeservices@ubagroup.com
