How to pay Chinese suppliers from Nigeria
To pay a Chinese supplier from Nigeria, register a Form M with your bank before the goods ship, then send US dollars by SWIFT from your company's account to the supplier's account in China or Hong Kong, quoting the Form M and invoice numbers. Since 1 June 2026 the CBN Foreign Exchange Manual allows advance payments of up to 30% of the import value, as reported. This guide covers the rules, the routes, published bank charges, the documents and the risks of paying through agents.
- Every importer of goods into Nigeria must complete a Form M through an authorized dealer bank, whether or not the import is valid for foreign exchange from the bank.
- A Form M is valid for 180 days for general merchandise and 365 days for plant and machinery, and the proforma invoice attached to it is valid for 90 days.
- The CBN Foreign Exchange Manual, Fourth Edition, effective 1 June 2026, raised the allowable advance payment for imports from 15% to 30% of the import value, as reported by Vanguard.
- Nigeria Customs issues the PAAR from the Form M, and in May 2025 it began piloting Form M processing on its B'Odogwu platform.
- China's foreign exchange rules expect the payer and the beneficiary to be the parties to the contract, so a payment sent by an agent can be queried by the supplier's bank.
- One Nigerian bank's published tariff charges 0.5% of the value plus $25 SWIFT for an outgoing transfer, and 1% of face value for a letter of credit of up to 180 days.
How to pay a Chinese supplier from Nigeria: the short answer
A Nigerian business pays a Chinese supplier in three stages. It registers the import on a Form M with its bank, it pays the supplier by bank transfer from an account in the company's own name, and it clears the goods with documents that match the payment. Form M is the Central Bank of Nigeria (CBN) form that records an import, its value and its supplier before the goods ship. The payment itself is usually a SWIFT transfer in US dollars. SWIFT is the international messaging network banks use for cross-border payments, and each bank has an 8 or 11 character SWIFT code.
The usual sequence for an order from China is:
- Agree the price, the payment terms and the Incoterm with the supplier, and get a proforma invoice. An Incoterm is a standard trade term, such as FOB or CIF, that sets who pays freight and insurance.
- Register a Form M with your authorized dealer bank, attaching the proforma invoice, the insurance certificate and any product certificates. An authorized dealer bank is a Nigerian bank licensed by the CBN to deal in foreign exchange.
- Pay the deposit by SWIFT, quoting the Form M number and the proforma invoice number in the payment reference.
- Pay the balance when the supplier sends a copy of the bill of lading, or pay through a letter of credit or bills for collection.
- Clear the goods with the Pre-Arrival Assessment Report (PAAR) that Nigeria Customs issues from the Form M.
This guide covers the Nigerian side of each step: the rules, the payment routes, published bank charges, the documents and the risks of paying through agents. For the supplier's side, such as how Chinese factories invoice and how to pay a Hong Kong account, see our general guide on how to pay suppliers in China.
Form M, PAAR and the 2026 CBN rules
Form M is not optional. FirstBank's published guidance describes it as a statutory document that every importer of goods must complete, whether or not the transaction qualifies for foreign exchange from the bank. Buying dollars from another source does not remove the need for a Form M.
How Form M works
The importer registers the Form M with an authorized dealer bank when it places the order. Registration is electronic, on the trade portal the CBN runs with the Nigeria Customs Service. A Form M is valid for 180 days for general merchandise and 365 days for plant and machinery. The bank can extend it by the same period, and any further extension needs CBN approval. The proforma invoice attached to it is valid for 90 days. Depending on the product, the Form M also needs an electronic insurance certificate and a NAFDAC or SONCAP certificate. NAFDAC is the National Agency for Food and Drug Administration and Control, which regulates food, drugs and cosmetics. SONCAP is the Standards Organisation of Nigeria Conformity Assessment Program, which covers regulated manufactured goods.
PAAR and the move to B'Odogwu
Once the bank validates the Form M, Nigeria Customs issues the PAAR, the report customs uses to assess the goods before they arrive. On 5 May 2025 the Nigeria Customs Service announced a pilot that processes Form M on B'Odogwu, its unified customs management system, at the PTML, Tin Can Island and Apapa commands. Of 544 Form M entries processed in the pilot, 120 were sent back for corrections.
What changed on 1 June 2026
The CBN Foreign Exchange Manual, Fourth Edition, took effect on 1 June 2026. As reported by Vanguard and others, it raised the allowable advance payment for imports from 15% to 30% of the import value. Many Chinese factories ask for a 30% deposit before production, so a standard deposit now fits within the cap. Ask your bank how it applies the cap if a supplier asks for more upfront, for example 50% on a first order. Earlier, in October 2023, the CBN lifted the restriction that had stopped importers of 43 items, including rice and vegetable oil, from buying foreign exchange in the official market.
| Rule | What it says |
|---|---|
| Who needs a Form M | Every importer of goods, whether or not the import is valid for foreign exchange from the bank |
| Form M validity | 180 days for general merchandise; 365 days for plant and machinery |
| Extensions | The bank can extend once by the same period; further extensions need CBN approval |
| Proforma invoice | Valid for 90 days |
| Supporting documents | Electronic insurance certificate; NAFDAC or SONCAP certificate depending on the product |
| Advance payment for imports | Up to 30% of the import value from 1 June 2026, up from 15% |
| The 43 restricted items | Foreign exchange restriction lifted by the CBN in October 2023 |
| Customs link | PAAR issued from the Form M; Form M processing piloted on B'Odogwu from May 2025 |
Sources: FirstBank Nigeria, Forms A, M and Q; Vanguard report of the CBN Foreign Exchange Manual, Fourth Edition; Nigeria Customs Service statement of 5 May 2025; Nairametrics report of the CBN circular of October 2023. As published on 29 October 2026. Confirm current rules with your bank.
How the money reaches a Chinese supplier
Most Chinese suppliers invoice in US dollars, and many invoice through a Hong Kong trading company with a Hong Kong bank account. A Nigerian importer pays in one of the ways below. Whichever route you use, the beneficiary on the payment should be the company named on the proforma invoice attached to your Form M.
| Supplier asks for | How you pay from Nigeria | What to check |
|---|---|---|
| USD to a Hong Kong company account | SWIFT transfer in USD from your domiciliary account, or with dollars bought from your bank against the Form M | The Hong Kong company is the seller on the proforma invoice and the Form M |
| USD to a mainland China account | SWIFT transfer in USD | The supplier's bank checks the contract and invoice before it credits the funds |
| Chinese yuan (CNY) to a mainland account | Ask your bank whether it can send yuan and at what rate | Compare the yuan quote with the dollar route |
| Letter of credit | Your bank issues the credit; the supplier is paid against documents | Documents must match the credit exactly |
| Bills for collection | Banks release the shipping documents to you against payment | The supplier carries more risk than under a credit |
Routes as described in this guide; supplier-side checks from PNC Bank's summary of China's goods trade foreign exchange rules. As published on 29 October 2026.
A domiciliary account is a foreign currency account at a Nigerian bank.
What the supplier's bank checks
China manages foreign exchange through the State Administration of Foreign Exchange (SAFE). As summarized by PNC Bank, a Chinese company must be on SAFE's list of companies with goods trade foreign exchange business, and banks cannot handle foreign exchange for companies that are not on it. The supplier's bank verifies each receipt using documents such as the contract, invoice and customs declaration. The same summary states that the remitter and the beneficiary must be the parties to the contract, the importer and the exporter. A payment from a company that is not on the contract can be held while the supplier's bank asks questions.
Paying in yuan
The CBN and the People's Bank of China renewed their bilateral currency swap in December 2024. The agreement is worth RMB15 billion (NGN3.28 trillion), runs for three years and aims to expand the use of local currencies in trade and investment. Whether your bank can send yuan, and at what rate, varies by bank. Paying in yuan saves the supplier a conversion but not yours, so compare the total cost of both routes.
Deposit, balance and payment terms
The payment term decides when money leaves Nigeria and what you hold in return.
| Term | How it works | Fit with the Nigerian rules |
|---|---|---|
| Advance payment (deposit) | You pay part of the order before production | Up to 30% of the import value from 1 June 2026, against a valid Form M |
| Balance against bill of lading copy | You pay the rest once the goods have shipped | Pay the same beneficiary and quote the same Form M |
| Letter of credit | Your bank promises to pay the supplier when it presents documents that match the credit | Bank commission applies; discrepancies delay payment |
| Bills for collection | Banks exchange the shipping documents for your payment, without a bank promise | Lower commission than a credit; the supplier carries more risk |
Advance payment cap as reported by Vanguard of the CBN Foreign Exchange Manual, Fourth Edition. As published on 29 October 2026.
A letter of credit (LC) is a bank's written promise to pay the seller when it presents documents that comply with the credit's terms. Bills for collection, also called documentary collection, send the shipping documents through the banks, and you receive them only after you pay or accept a bill of exchange. A supplier that has not traded with you before may ask for an LC on the first order and accept deposit and balance on later orders.
Treat the deposit and the balance as two payments against one Form M. Diary the Form M expiry date: if production or shipping slips past 180 days, ask the bank for the extension before the Form M lapses, not after.
What it costs: published bank charges
Each Nigerian bank publishes its own tariff. The table shows one bank's published charges for the steps in this guide, as an example of the items to budget for on each order.
| Item | Published charge |
|---|---|
| Form M processing | NGN3,000 |
| Electronic Form M | NGN1,500 maximum, per CBN circular on electronic processing |
| Form M amendment, revalidation or extension | NGN5,000 each |
| PAAR | No charge for a Form M valid for foreign exchange; NGN2,500 for a Form M not valid for foreign exchange |
| Outgoing telegraphic transfer | 0.5% of the transaction value, plus offshore charges where applicable |
| SWIFT charge on an outgoing transfer | $25 |
| Letter of credit establishment, up to 180 days | 1% of face value, plus communication charges |
| Letter of credit confirmation | 0.5% of face value, minimum NGN5,000 |
| Bills for collection | 0.5% of the bill value |
Source: Standard Chartered Bank Nigeria, Service Fees and Price Guide, as published on 29 October 2026. Other banks set their own charges.
On a $40,000 order paid as a $12,000 deposit and a $28,000 balance, a 0.5% transfer commission comes to $200, plus $25 SWIFT charges on each payment. Three costs sit outside the tariff. The first is the exchange rate if you buy dollars with naira, so ask for the rate before you confirm. The second is correspondent bank charges deducted on the way to China. The third is the supplier's own bank charge.
Send SWIFT payments with the charge code OUR, which means you pay all transfer fees and the supplier receives the full invoice amount. SHA shares the fees, so intermediary deductions come out of the amount. BEN puts all fees on the supplier. A payment that arrives short delays shipment while the supplier queries the gap.
Documents that tie the payment to customs
The bank, customs and the supplier's bank each match the same set of numbers: the Form M number, the invoice number, the supplier's name and the value. Keep them identical across every document.
| Stage | Document | Issued by |
|---|---|---|
| Before ordering | Proforma invoice, valid for 90 days | Supplier |
| Before shipment | Form M, with insurance certificate and NAFDAC or SONCAP certificate where required | Importer, through the authorized dealer bank |
| Before arrival | PAAR | Nigeria Customs Service |
| Each payment | Payment instruction quoting the Form M and invoice numbers; SWIFT confirmation | Importer and bank |
| After shipment | Bill of lading, final commercial invoice, packing list | Carrier and supplier |
| Clearance | Customs declaration based on the PAAR, lodged by a licensed agent | Importer's customs agent |
Sources: FirstBank Nigeria, Forms A, M and Q; Nigeria Customs Service statement of 5 May 2025. Typical sequence; requirements vary by bank and product. As published on 29 October 2026.
A bill of lading is the document the shipping line issues when it receives the goods. Ask the supplier to send a copy before you pay the balance, and check that the shipper, consignee and goods match the Form M. If the final invoice value differs from the proforma, amend the Form M before clearance rather than after.
Agents, cash and informal routes: what goes wrong
Some importers pay through an agent who collects naira in Lagos and pays the supplier from an account in China, or through a currency dealer or a stablecoin trader. The facts below are what an importer should weigh before using these routes.
- The Form M is still required. Form M applies whether or not the import is valid for foreign exchange from a bank, and customs issues the PAAR from it. Goods paid through an agent still need both to clear.
- The payment does not appear in your bank's records. A transfer made by someone else cannot be matched by your bank to your Form M.
- The supplier's bank may query it. China's rules expect the payer to be the party on the contract. A transfer from an agent's account is a payment from a third party.
- There is no trace. A SWIFT transfer from your own account carries a reference and can be traced through the banks. Cash handed to an agent cannot.
- Digital assets are regulated as securities. The Investments and Securities Act 2025, signed on 25 March 2025, recognizes digital assets as securities and gives the Securities and Exchange Commission authority over their issuance and trading. A USDT transfer to a supplier creates no bank record against your Form M.
Where Helm fits
Helm is a financial technology company, not a bank. Accounts are held with regulated partner institutions. A Helm account gives your company USD account details in its own name, with a US routing and account number that receives ACH, Fedwire and SWIFT payments.
For a business that buys from China, it works like this:
- Pay suppliers in USD. Send international payments by SWIFT from your company's own account to the supplier's USD account in China or Hong Kong, with the rate, fee and expected arrival shown before you send.
- Hold dollars for the balance. Keep the balance payment in USD so it is not converted on the day it falls due.
- Convert stablecoins. If a buyer pays you in USDC or USDT, you can receive them and convert them to USD inside the account, then pay the supplier by SWIFT.
- Finance the balance. Trade finance, such as supplier finance and working capital, is arranged case by case.
A Helm account sits outside Nigeria. Your goods still need a Form M and a PAAR, so confirm with your Nigerian bank and adviser how a payment from a foreign account is recorded against the Form M. Each account has a named account manager, and review questions are answered in writing within one business day. Helm agrees pricing with each business in writing before the account opens, and shows the rate, the fee and the expected arrival before you confirm each payment.
A checklist for paying a Chinese supplier from Nigeria
- Get a proforma invoice and register the Form M before the order ships.
- Check the seller on the invoice, the Form M and the payment are the same company.
- Keep the deposit within 30% of the import value, or ask your bank how it applies the cap.
- Send each payment by SWIFT with charges set to OUR, quoting the Form M and invoice numbers.
- Pay the balance against a copy of the bill of lading, or use a letter of credit for a new supplier.
- Diary the Form M expiry date and extend it before it lapses.
- Amend the Form M if the final invoice value changes.
- Keep the SWIFT confirmations with the Form M, PAAR and customs declaration for each order.
For how other importers organize supplier payments, see the importers page.
Open a Helm account
USD, EUR and GBP accounts in your company's name, with a named account manager.
Open accountQuestions
How do I pay a Chinese supplier from Nigeria?
Register a Form M with your authorized dealer bank, then send US dollars by SWIFT to the supplier's account in China or Hong Kong, quoting the Form M and invoice numbers. Pay the balance against a copy of the bill of lading, or use a letter of credit or bills for collection.
Do I need a Form M if I do not buy dollars from my bank?
Yes. FirstBank's published guidance states that Form M must be completed by all importers, whether or not the transaction qualifies for foreign exchange. Nigeria Customs issues the PAAR from the Form M, so goods cannot clear without one.
How long is a Form M valid?
A Form M is valid for 180 days for general merchandise and 365 days for plant and machinery. The bank can extend it by the same period, and further extensions need CBN approval.
How much can I pay a Chinese supplier in advance from Nigeria?
As reported by Vanguard, the CBN Foreign Exchange Manual, Fourth Edition, raised the allowable advance payment for imports from 15% to 30% of the import value from 1 June 2026. Ask your bank how it applies the cap if the supplier asks for more upfront.
What is a PAAR?
The Pre-Arrival Assessment Report is the document Nigeria Customs issues from a validated Form M to assess goods before they arrive. The customs declaration for clearance is based on it.
Can I pay a Chinese supplier in yuan from Nigeria?
It depends on your bank. The CBN and the People's Bank of China renewed a RMB15 billion currency swap in December 2024 to expand local currency use in trade, but each bank decides whether it sends yuan and at what rate. Compare the yuan quote with the dollar route.
Why does my Chinese supplier want payment to a Hong Kong account?
Many Chinese factories sell through a Hong Kong trading company that holds a Hong Kong bank account. Make sure the Hong Kong company is the seller on the proforma invoice attached to your Form M, so the payment and the import documents match.
What do Nigerian banks charge to send money to China?
Each bank publishes its own tariff. Standard Chartered Bank Nigeria's published guide lists 0.5% of the transaction value plus offshore charges for an outgoing telegraphic transfer, and a $25 SWIFT charge.
Is it safe to pay a Chinese supplier through an agent in Nigeria?
The goods still need a Form M and a PAAR, and a payment made by the agent cannot be matched by your bank to your Form M. China's rules expect the payer to be the contract party, so the supplier's bank may query a third-party payment.
Can I pay a Chinese supplier with USDT from Nigeria?
The Investments and Securities Act 2025 recognizes digital assets as securities under the oversight of the Securities and Exchange Commission. A USDT transfer creates no bank record against your Form M, so take advice before using one for an import payment.
References
- FirstBank Nigeria: Forms A, M and Q
- Vanguard: CBN launches FX manual, grants extractive firms full proceeds access
- Federal Ministry of Information and National Orientation: Nigeria Customs Service pilots Form M process on B'Odogwu trade portal (5 May 2025)
- Nairametrics: CBN lifts foreign exchange restrictions on 43 previously banned items
- People's Bank of China: PBOC and CBN renew bilateral currency swap agreement
- PNC Bank: Navigating China's regulations on foreign exchange for goods trade
- Standard Chartered Bank Nigeria: Service Fees and Price Guide
- TechCabal: Investments and Securities Act 2025
This guide is general information for businesses, not financial, legal or tax advice. Rules, fees and timings were checked against the sources listed on the review date and may change.