The Central Bank of Nigeria (CBN) has implemented a crucial temporary measure to support importers facing documentation challenges due to ongoing system transitions in the country's trade processing framework. In a significant development for Nigeria's import sector, the apex bank has granted a two-month window allowing businesses to utilize National Agency for Food and Drug Administration and Control (NAFDAC) licences that expired on December 31, 2025.
CBN Circular Details the Temporary Dispensation
Through a circular dated January 26, 2026, and published on its official website, the CBN announced that authorised dealer banks may continue processing Form M applications using the expired NAFDAC licences. The directive, which takes immediate effect, will remain valid until February 28, 2026, providing importers with much-needed relief during this transitional period.
The circular was formally signed by Aliyu M. Ashiru, Director of the Trade and Exchange Department, who stated: "The Central Bank of Nigeria wishes to notify all Authorised Dealer Banks and the general public of a temporary dispensation offered by NAFDAC permitting the continued use of NAFDAC licences that expired on 31st December, 2025, for the processing of Forms M for a two-month period ending February 28, 2026."
Addressing Operational Challenges in Trade Processing
This regulatory intervention comes as a response to significant operational challenges that have emerged following Nigeria's migration from the legacy Nigeria Integrated Customs Information System II (NICIS II) platform. Importers have encountered substantial difficulties in validating or renewing their NAFDAC licences, particularly due to technical issues experienced on the B'Odogwu platform after December 2025.
These systemic problems have created bottlenecks in import documentation processes, threatening to disrupt normal trade flows and potentially impacting Nigeria's economic activities. The CBN's temporary measure aims to prevent further delays while NAFDAC completes the integration of its systems with the National Single Window initiative.
Strict Compliance Requirements for Authorised Dealer Banks
The CBN has issued clear instructions to authorised dealer banks regarding this temporary arrangement:
- Banks must continue accepting expired NAFDAC licences for Form M processing during the approved window
- The approval is strictly time-bound and will automatically lapse on February 28, 2026
- Financial institutions must comply fully with all terms of the directive
- Importers must obtain Form M processing to access foreign exchange for their imports
The central bank emphasized that this measure follows a similar temporary dispensation already granted by NAFDAC itself, ensuring regulatory alignment across government agencies.
Understanding Form M's Role in Nigeria's Import Framework
Form M represents Nigeria's mandatory electronic import documentation platform, serving as a critical tool for capturing comprehensive details of goods imported into the country. This system plays multiple essential roles in Nigeria's trade ecosystem:
- Facilitating trade monitoring and customs clearance procedures
- Managing foreign exchange utilization and demand
- Ensuring trade data integrity and regulatory compliance
- Verifying product compliance and required licences before goods arrive
Processed through authorised dealer banks and integrated with Nigeria Customs systems, Form M enables regulators to verify tariff classifications, NAFDAC approvals, and the legitimacy of import transactions. Through its Form M policies, the CBN maintains direct involvement in managing Nigeria's balance of payments, reducing trade-related foreign exchange leakages, and aligning imports with national economic objectives.
Related Developments in Nigeria's Trade Sector
In a parallel development that further demonstrates Nigeria's efforts to streamline trade processes, the Nigeria Customs Service (NCS) has commenced implementing new procedures to facilitate temporary vehicle imports. According to a statement signed by Abdullahi Maiwada, Deputy Comptroller of Customs and National Public Relations Officer, the service is now granting safe passage to personal vehicles temporarily imported or transiting through Nigeria by international travellers.
This initiative, anchored on the Nigeria Customs Service Act of 2023 and supported by relevant international conventions, represents another step toward creating a more efficient and business-friendly trade environment in Nigeria. Together with the CBN's temporary NAFDAC licence dispensation, these measures reflect ongoing governmental efforts to address practical challenges in Nigeria's import-export ecosystem while maintaining regulatory standards.
