documents_for_invisible_transactions_in_nigeria

Approved Documents for Invisible Transactions in Nigeria

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There are important documents applicants need to submit to the Central Bank of Nigeria (CBN) for the processing of fees for foreign services, such payment is known as invisible transactions in international trade.

This isn’t limited to Nigeria. It is a general practice around the world. Foreign invisible transactions are prevalent in Nigeria because of the craze for foreign services (and goods).

Even the government that should take the lead in patronising indigenous services prefer importation of services from UAE, USA, Germany, Italy, and China among others.

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The billions of dollars in invisible transactions that have been spent through estacodes for politicians are unimaginable.

That said, political spending isn’t the only invisible transaction that take place in Nigeria. Private company and incorporation do send members of their staff to foreign seminars, workshops and training, payment for their hotel lodge constitute invisible transactions.

And there are approved documents to access the official foreign exchange rate for such foreign transactions, they constitute invisible trade, trade that do not involve exchange of physical objects.

What are the documents for invisible transactions?

Apart from the completion of Form A which is required for all the services outlined in this guide, the kind of services determines the documents applicants would attach to their applications.

This means that the document to attach to a foreign seminar is completely different from a postgraduate studies invisible transaction application at the bank.

Here is the complete required documents for all invisible transactions in Nigeria.

NOTE: Application to make payment for all these services can be done on the Trade Monitoring System designed by Nigeria’s apex bank (which some people prefer to call Single Window payment platform)

Correspondence Courses:

There are several digital online courses that involve registration, membership subscription and examination fee for individuals and corporate bodies. Important documents for application for forex for these courses are:

  • Duly completed form A
  • Evidence of membership and/or enrolment
  • Demand Note/Invoice
  • Your Bank Verification Number (BVN)
  • Internal Passport (Nigerian)

BTA:

We’ve discussed in our previous guides the requirements to apply for Business Travel Allowance. If it’s your first application, here are the documents for invisible transactions for BTA:

  • Duly completed e-Form A on TRMS portal
  • Letter of invitation from the overseas business partner
  • Certificate of the business registration/incorporation
  • Valid International Passport and Visa
  • Letter of request from the corporate body stating the purpose of visit
  • Return Ticket

Note: Applicants are entitled to US$5,000 per quarter

Freight Payment:

This payment is common among exporters for transportation invoices

  • Completed Form A
  • Fill form NXP/NCX on TRMS
  • Freight Invoice
  • Bill of Lading
  • Confirmation of reasonableness BY NSC

PTA:

For Personal Travel Allowance, the required documents you need to upload on the TRMS are:

  • Duly completed Form A (which is online)
  • Valid International Passport and Visa
  • Return Ticket

Note: Note: PTA Applicants are entitled to US$4,000 per quarter. Check our guide on the requirements on PTA/BTA

Education Fee

Education fee falls under payment for tuition fee for foreign school fees. It’s divided into two: 1) undergraduate 2) Post-graduate

Undergraduate Studies:
  • Duly completed Form A
  • Evidence of admission/course program
  • School bill for the period
  • Details of recipient account of the institution
  • International passport (Nigerian Student)
Postgraduate Studies:
  • Photocopy of first-degree certificate (or its equivalent)/Certificate True copy of statement of
  • Result by the awarding institution
  • Evidence of admission/course program
  • School bill for the period
  • International passport (Nigerian Student)

Foreign Medical Treatment:

Foreign medical treatment is the most lucrative services abroad among members of National Assembly, senior civil servants, wealthy individuals and their families, state governors and lawmakers.

And sometimes, there are individuals who prefer foreign medical attention in India, USA, Saudi Arabia, Germany, and UK for certain ailments, here are the approved documents for invisible transactions foreign medicals are:

  • Duly completed Form A
  • Letter of reference from the foreign specialist hospital or doctor in Nigeria
  • Valid international passport
  • Visa
  • Letter issued by the overseas specialist doctor or hospital stating the cost of treatment and maintenance
  • Bank account details of the overseas hospital for payment
  • Return ticket

Note: Payment for medical fees shall be remitted directly to the overseas hospital

Board Meeting/Directors’ Fees

For some reasons, board of director of a company in Nigeria may decide to take their board meeting to another country most especially when such company has branches in other countries around the world.

In this case, a formal application will be made with the following documents:

  • Completed form A to be filled online at TRMS
  • Board resolution for the meeting and/or Director’s Fees
  • Evidence of Board Membership (Letter of appointment)
  • Evidence of tax paid on the amount to be remitted in the case of Directors Fees
  • Bank Verification Number (BVN)

Conference organized abroad

There are hundreds of Nigerians who have seized the opportunity of foreign conference to find a better job abroaf. This include seminar and training. The applicants for forex must fill the required documents for invisible transactions, they are:

  • Duly completed form A to be filled TRMS portal
  • Letter of initiation and estimate of expenses issues by the organizing body overseas
  • Page of passport of the beneficiary
  • Letter of Authority to travel from Nigerian organization with the list of nominees for the course/conference, seminar in case of corporate nominees
  • Bank Verification Number (BVN)
  • Return ticket of the beneficiary

Advertisement Outside Nigeria through Local Agent

  • Duly completed form A
  • Agreement on the advertisement
  • Demand Note/Invoice
  • Evidence of operation of non-resident account

Mortgage Servicing

If you’re in Nigeria and want to send payment to the note holder in overseas country, here are the documents to access forex at the official rate to make payment:

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  • Duly completed form A on TRMS portal
  • Evidence of tax payment in Nigeria
  • Letter of request from applicant
  • Schedule of outstanding liability on the mortgage
  • Mortgage agreement (copy) in the name of the applicant

Bonus and Gratuity

  • Duly completed form A
  • A letter from the applicant’s employer confirming payment
  • Evidence of payment of tax on the amount to be remitted in the case of bonus

Advertisement Outside Nigeria without Local Agent

  • Duly completed form A
  • Agreement on the advertisement
  • Demand Note/Invoice

Contract Service Fee

Contract service varies, you can refer to the list of services that constitute invisible trade for clarity. The required documents for this are:

  • Duly completed form A on TRMS portal
  • Service agreement
  • Confirmation of service fee
  • Demand Note/Invoice
  • Evidence of tax paid on the amount o be remitted

Family Maintenance Allowance

There are hundreds of expatriates working in Nigeria while their family members reside in their home country. This is where family maintenance allowance applies with these documents for invisible transactions:

  • Duly completed form A on TRMS portal
  • Tax certificate/receipt for the relevant period
  • Photocopy of relevant pages of international passport
  • Evidence of operation of an account with the bank and the payment of salaries into the account
  • Valid Resident Permit

Remittance of Dividends, Profits and Bonuses

  • Duly completed Form A
  • Audited accounts for the years dividends declared
  • Board of Directors/AGM resolution, authorizing the payment of dividends/profits/bonuses to both local and foreign shareholders
  • Evidence of tax payment on the amount to be remitted outside Nigeria
  • Evidence of capital importation into Nigeria e.g CCI or Approves status and evidence of previous remittance of dividends/profit/bonuses
  • Evidence of what is due to each shareholder for the period of dividends is declared and/or dividend warrant

Requirement of interim dividend in respect of quoted companies shall also include:

  • Duly Completed Form A
  • Evidence of tax payment
  • E-CCI
  • NSE announcement of interim dividend payment
  • Evidence of what is due to each shareholder for the period of dividends is declared and/or dividend warrant

Charter Fees

  • Completed Form A
  • Sailing certificate issued by NIMASA,
  • Charter party Agreement

Repayment of External Loans

External debt and repayment isn’t restricted to state or a country. Multi-nationals and global company with a strong financial foundation do take loans and make repayments based on terms of the loan.

For such, the important documents to submit to be able to access forex at the official market rate from the CBN are:

  • Duly completed Form A
  • Copy of Agreement, showing schedule of repayment
  • Schedule of drawdown of the loan/facility when not stated in the loan agreement
  • Evidence that the loan/credit was brough into the Nigeria
  • Import duty receipt with SGD form number
  • Demand note/Invoice
  • Swift reference in respect of inflow of funds
  • Evidence of the issuance of eCCI

NOTE: The documents will be uploaded on TRMS portal

Consultancy Services

This kind of transaction is mostly used by some multi national companies with operation base in Nigeria.

  • Completed e-Form “A” on TRMS portal
  • Technical service Agreement as approved by NOTAP,
  • Demand Note/Invoice,
  • Evidence that the services were rendered locally,
  • Certificate of satisfactory completion issued by the
  • Nigerian employer, evidence of tax paid on the amount to be remitted Confirmation of reasonableness of fees by NOTAP,
  • Certificate of registration from NOTAP

Manufacturing/Technical Service

  • Completed Form “A”
  • Technical service Agreement as approved by NOTAP,
  • Demand Note/Invoice
  • Evidence that the services were rendered locally
  • Certificate of satisfactory completion issued by the Nigerian employer
  • Evidence of tax paid on the amount to be remitted,
  • Confirmation of reasonableness of fees by NOTAP,
  • Certificate of registration from NOTAP

Annual Leave Pay

  • Duly completed Form A
  • Photocopy of relevant pages of the applicant’s international passport
  • Letter from employer stating that the applicant is going on leave and the account of leave allowance paid to the applicant
  • Photocopy of Resident Permit (for the period applied for)

Management Services

  • Completed Form “A”,
  • Management service Agreement as approved by NOTAP,
  • Evidence of tax payment based on the amount to be remitted,
  • Demand note/Invoice,
  • Certificate of satisfactory completion of the job issued  by the Nigerian employer,
  • Confirmation of reasonableness of fees by NOTAP,
  • Certificate of registration from NOTAP.

Payment for Demurrage

  • Completed Form A
  • Evidence of tax payment on the amount to be remitted
  • Audited Account for the relevant period
  • Manifest of the Ship
  • Copies of receipts issued to the Importer by the  shipping line
  • Agreement between the local shipping agent and the principal overseas,
  • Demand Note/Invoice,
  • Evidence of Payment of demurrage charges into the dedicated account,
  • Certification of arrival of Vessel by the NPA.
  • NSC confirmation of reasonableness of demurrage payment

Hotel Services

  • Completed Form “A”
  • Demand note/Invoice,
  • Certificate of registration from NOTAP
  • Confirmation of reasonableness of fees by NOTAP,
  • Management service Agreement as approved by NOTAP,
  • Evidence of tax payment based on the amount to be remitted
  • Certificate of satisfactory completion of the job issued by the Nigerian employer,

Death claims

  • Duly completed form A on TRMS
  • Demand note/debit note from foreign broker/insurer
  • Policy document
  • Letter of attestation from NAICOM

Repair, maintenance, lease & charter of aircraft

  • A down payment not exceeding 15% of the cost repair/maintenance
  • Duly executed Form A covering 100% cost of repairs/maintenance
  • Duly executed Agreement
  • A guarantee of performance Bond for the value of the down payment issued by a recognized bank in the country where maintenance/repairs is correct resolution
  • Demand note/invoice
  • Confirmation of reasonableness of fees from
  • Nigerian Maritime Administration and Safety  Agency (NIMASA) or Nigerian Civil Aviation Authority (NCAA) as applicable

Subsequent Payment:

Duly completed Form A for total cost (photocopy)

Demand note/invoice

Duly executed Agreement

Net Proceeds of Sale of International Air tickets

  • Duly completed Form A
  • Auditors report on passengers’ revenue and expenditure (Naira and Dollar) for the period for which the remittance is to be made
  • Summary statement of sales and expenditure (in foreign currency and Naira)
  • Direct sales report, including bank tellers (in foreign currency and Naira)
  • Agent sales and bank draft (in currency of sale)
  • Evidence of tax paid on the amount to be remitted issued by FIRS
  • Evidence of payment of stipulated taxes, fees and charges to relevant regulatory agencies (FAAN, NCAA, NAMA, NAHCO, SAHCOL, etc).
Wrapping Up

The authoirsed documents for invisible transactions in Nigeria to access forex for certain services listed in this article are subject to change by the Central Bank of Nigeria.

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