Difference between Form M and Form Q
Importation is arguably the source of wealth to eastern Nigeria. Some prominent men in Nigeria like Obi Cubana despite owning one of the largest relaxation empire In Nigeria imports goods from outside the shores of this country.
That been said, In order to properly regulate importations into the country as well as calculate and monitor Forrex transactions between Nigeria importers and their partners CBN (central bank of Nigeria) introduced these mandatory forms (Form M and Form Q) .
Below is all that we covered on this article.
Importance of Form Q and Form M
The Two forms plays different roles in the Importation sector. Although the are Two different entities but they work hand in hand.
Importance of Form M
This formed was formed by federal govt of Nigeria through Finance ministry and Nigerian custom services to monitor the quality of goods that enters into Nigeria as well as to collect required duties from importers and exporters in Nigeria. This 3-form M must be obtained by every importer in Nigeria irrespective of the business scale. Be it Small or medium enterprises (SMEs).
Importance of Form Q
Form Q aids small and medium enterprises to buy Forex at an affordable rate in accredited Nigerian banks or CBN portal. SMEs can get access to $20,000/quarter.
Difference between Form M and Form Q
Simply, “Form M” enables federal Govt to identify Nigerian importers in order to make it easier to collect “importation duties” from them. WHILE “Form Q” is a form created by federal government of Nigeria for Micro, Small and Medium Enterprises to enable them buy Forrex at a very cheap price from accredited Banks / CBN.
Requirements for Q form
To be qualified for Form Q, these are the things you need to put in place.
- 1. Firstly, you must own a small or medium enterprise (SMEs)
- 2. You must be a Nigerian citizen or a certified business man in Nigerian.
- 3. You must have “Form M” ( its not obtainable in all banks, drop a comment below if you wish to see the list of banks that are eligible)
- 4. A verified International passport.
- 5. Form Q original request letter
- 6. Form Q Official application
- 7. Proforma invoice.
- 8. You must be registered with CAC
- 9. You must own a current account in any Nigerian commercial bank.
- 10.You must have a product certificate.
What is Form Q used for
Form Q is used to obtain Forex at a very cheap rate from Accredited banks / CBN by Small and medium enterprises for Importation of goods from other countries.
How to get Form Q
Getting Form Q is not a problem, Just Fund your current account >> go to your bank and write a short letter and fill out the Form from your bank >> lastly give them your (PFI proforma invoice) >> your bank will process the rest.
Requirements for Form M
You must be a validated importer approved by, Federal Inland Revenue Service. To can check validation with the above link.
Once you are registered, log into trade portal and fill in your credentials.
You may also like to read – Benefits of sanwopay, how to Get loan and become agent
How do I get M form?
To get the e-Form M, you will need to log-in to Nigerian Trade portal or go to one of the accredited commercial banks.
Duration of Form M
Its for 1 year (365 days) although it can be extended to another 6 months (180 days)
Conclusion
It will be advisable to get these forms if you wish to start Importation in Nigeria.
If you have any questions? Leave a comment below for us.