CBN Stops Price Verification System
By Patience Ikpeme
Ten months after its launch, the Central Bank of Nigeria (CBN) has made public the discontinuation of the FX Price Verification System (PVS). This move takes effect from July 1 2024 .
The CBN gave reasons for the discontinuation to be due to “recent developments in the Nigerian Foreign Exchange Market” though no specific development was listed .
The Price Verification System (PVS) portal was launched to reduce over-invoicing and under-invoicing in international trade transactions. Importers were required to submit a Price Verification Report generated by the portal as part of their Form M application, a declaration for importing physical goods.
As contained in the circular, “Given recent developments in the Nigerian Foreign Exchange Market, the CBN hereby discontinues the Price Verification System. Consequently, with effect from July 01, 2024, all applications for Form ‘M’ shall be validated without the Price Verification Report generated from the Price Verification Portal.”
Piror to this, a Price Verification Report generated from the portal was mandatory for all Form ‘M’ requests. This requirement was enforced dating far back as August 31, 2023, following the introduction of the portal during the tenure of former acting governor, Folashodun Shonubi. The portal was part of a broader initiative that included the e-evaluator and e-invoice systems, implemented by the CBN in 2022 to replace hard copy final invoices, streamline documentation processes for foreign exchange, and monitor imported goods for import duties.
There fore, industry stakeholders and importers are advised to take note of this change and adjust their processes accordingly.
This directive emphasized clearly that “For the avoidance of doubt, by this circular, the Price Verification Report is no longer a requirement for the completion of a Form ‘M’. Please note and be guided accordingly.”
This policy change was attributed to evolving conditions in the Nigerian Foreign Exchange Market, indicating a shift towards a more streamlined process for importers.
