Your bank needs the supplier's bank details, an invoice, the purpose of the payment and your country's trade documents. The invoice must name both companies, describe what you bought and match the amount you send. In Nigeria, imported goods need a Form M. Services paid with official-market currency need a Form A.
General information, not legal or financial advice. Check current rules with your bank before you pay.
What does your bank need to pay a foreign supplier?
A bank pays against an instruction and a reason. Expect to give it five things.
- The supplier's bank details. The legal name, the account number or IBAN, and the bank's SWIFT code. Copy them from the invoice. Confirm any change by phone, on a number you already hold.
- The invoice. A pro forma before shipment, or the commercial invoice once the goods ship.
- The contract or order. Banks compare its prices and parties with the invoice.
- The purpose. Goods, services or something else, often as a code.
- Your country's documents. In Nigeria, a Form M for goods or a Form A for services.
Once the payment leaves, ask your bank for the MT103. It is your proof that the money went out.
What must the invoice show?
Banks read the invoice for three answers. Who gets paid, for what, and how much. Each field supports one of them.
| Field | Why the bank checks it |
|---|---|
| Seller's name and address | It should match the holder of the account you pay |
| Buyer's name and address | It should be the company that pays |
| Invoice number and date | They tie the payment to one deal |
| Description of goods or services | Vague descriptions are a money laundering red flag |
| Quantity, unit price and total | Prices out of line with the market raise questions |
| Currency | It sets what you owe, and in which currency |
| Incoterm and payment terms | They show what the price covers and when you pay |
| HS code (commercial invoice) | It classifies the goods for duty and tax |
| Validity date (pro forma) | An expired quote can block a Form M in Nigeria |
The US International Trade Administration (ITA) lists most of these fields for a pro forma. They include the terms of sale, the payment terms and a validity date. For the commercial invoice, the ITA adds the HS code. In Nigeria, the price basis is fixed. Imports are on a CFR basis, except oil, where DAP is also allowed.
A letter of credit is stricter. Under UCP 600, in force since 1 July 2007, the commercial invoice must appear to come from the beneficiary. It must be made out in the applicant's name and in the credit's currency. Its description of the goods must correspond with the credit. The ICC chose not to revise UCP 600 at its meeting of 19 March 2026.
Pro forma or commercial invoice: which one does the bank need?
Often both, at different steps. The pro forma comes before the deal ships. The commercial invoice records the sale.
| Pro forma invoice | Commercial invoice | |
|---|---|---|
| What it is | A quote in invoice format | The record of the sale |
| When | Before shipment | With or after the shipment |
| Bank use | Open a letter of credit, arrange a currency transfer | Pay against the shipment |
| Customs use | Tells import authorities about the future shipment | Used to assess duties and taxes |
The ITA says buyers use a pro forma to apply for an import licence. They also use it to open a letter of credit or arrange a currency transfer. The commercial invoice is sometimes used for foreign exchange purposes too.
Nigeria splits the two clearly. The pro forma supports the Form M, and the Form M amount must agree with it. When the bank pays, only the amount on the commercial or final invoice is remitted.
What is Form M, and when do you need Form A?
Nigeria's rules sit in the CBN Foreign Exchange Manual, 4th Edition. It took effect on 1 June 2026 and replaced the 2018 edition. Form M is the application to import goods. Form A is the application to pay for services, which the manual calls invisible trade.
| Rule | What the 2026 manual says |
|---|---|
| Who needs Form M | Anyone importing physical goods, whatever the value, paid or not |
| Documents for Form M | Pro forma invoice, insurance certificate, regulatory permits such as NAFDAC or SON |
| Pro forma validity | 90 days |
| Amount | The Form M amount must agree with the pro forma |
| Shipping documents | They must reach your bank within 21 days of shipment |
| Amount remitted | Only the amount on the commercial or final invoice |
| Doubtful documents | The bank checks with the issuer before paying. Suspected forgery goes to the CBN |
| Form A | Mandatory for all foreign currency bought in the official market (NFEM) |
| Ordinary domiciliary account | Form A is not mandatory. The bank still records the purpose with a FEMS code |
Services need their own evidence. For a contract service fee, the manual lists four documents. They are the service agreement, a confirmation of the fee, the invoice and evidence of tax paid.
One more step may apply to goods. A CBN circular of 21 January 2022 added a bank-authenticated electronic invoice. From 1 February 2022, importers could not pay a foreign supplier without one. Invoices under USD 10,000 were exempt, unless the supplier invoiced USD 500,000 or more a year. Ask your bank whether the step still applies to your file.
Other African markets run their own import files. Ghana, Kenya, South Africa, WAEMU and CEMAC are covered in paying Chinese suppliers from Africa.
What is a payment purpose code?
A purpose code tells each bank on the route why the money moves. Each system keeps its own list.
- ISO 20022. The ISO 20022 external code sets include a purpose list. GDDS means purchase and sale of goods. SCVE covers services. SUPP marks a payment to a supplier. The sets update quarterly, and the latest release is from August 2026.
- Nigeria. For transfers from a domiciliary account, the bank records the purpose as a sectoral code. The codes sit in the CBN's FEMS Code Book.
- Yuan payments. Mainland China has its own rules on payment details, covered in the China guide above.
Pick the code that matches the invoice. A goods code on a services invoice is a mismatch. Inconsistent documents lead the trade document red flags below.
Why does a payment provider ask for more than an invoice?
An invoice is easy to make. So providers test it against the rest of the deal. The FATF and the Egmont Group published trade-based money laundering risk indicators on 11 March 2021. Here is how that list maps to the questions you get.
| Risk indicator in the FATF and Egmont list | What the provider asks you |
|---|---|
| The payee's name differs from the exporter's name | Why the account holder is not the seller |
| Prices differ between the invoice and the contract | The contract or order behind the invoice |
| Goods described only in general terms | A specific description, with quantities |
| Prices out of line with the market or past deals | Why the price moved |
| Documents missing, often amended or resubmitted after rejection | The original document, and why it changed |
| A late change of payee, date or amount | Written confirmation from the supplier |
| Someone other than the importer pays, with no clear reason | Who the importer is, and why you pay |
| Large round amounts where they are unusual | The invoice behind the round number |
| Trade outside your stated line of business | How the purchase fits your business |
One indicator alone may not warrant suspicion, the report says. It could still prompt further monitoring and examination.
This check matters to platforms that pay on behalf of clients. The platform pays, but the goods go to its client. Without a clear reason, that matches the third-party indicator on the list. So expect to send the client's invoice and show your link to the client. See how payments on behalf of your clients work.
What to check before you send
- The seller on the invoice is the holder of the receiving account.
- The buyer is your company, or your client if you pay on its behalf.
- The description, quantities and unit prices are specific.
- The invoice, the contract and any Form M show the same amount.
- The pro forma is still valid, or you hold the final invoice.
- The purpose code matches what the invoice sells.
- In Nigeria, the Form M is registered for goods, or a Form A is ready for services.
- The invoice number is in the payment reference.
- Any new bank details were confirmed by phone, on a known number.
FAQ
Can you pay a foreign supplier with a pro forma invoice?
Yes. The US International Trade Administration says a buyer can use a pro forma to arrange a currency transfer. In Nigeria, banks remit only the amount on the final commercial invoice.
What is the difference between a pro forma and a commercial invoice?
A pro forma is a quote in invoice form, sent before shipment. The commercial invoice records the sale. Customs in the buyer's country uses it to assess duties.
Do you need a Form M to pay for services in Nigeria?
No. Form M covers imports of physical goods. Services go on a Form A, which is mandatory when you buy the currency in the official market.
What purpose code do you use for a supplier payment?
It depends on the rail. In ISO 20022, GDDS covers goods, SCVE covers services and SUPP marks a supplier payment. Match the code to the invoice.
How long is a pro forma invoice valid for a Form M?
90 days. Nigeria's 2026 Foreign Exchange Manual sets that validity for the pro forma behind a Form M.
For B2B trade platforms
Paying suppliers abroad for importers across Africa? Talk to our team. Nilos processes $2B+ a year. Fund in local currency (NGN, KES, XOF, XAF). See payments on behalf of your clients.