CBN Removes Price Verification System For Importers’ FX Access

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has announced the discontinuation of its Price Verification System (PVS) Portal, effective July 1, 2024, meaning it will no longer be the criterion for importers to access foreign exchange (FX).

In a circular released late on Wednesday, the apex bank said the decision follows recent developments in the Nigerian Foreign Exchange Market.

The circular issued by the Acting Director of the Trade & Exchange Department, Mr W.J. Kanya, also referenced a previous circular dated August 17, 2023, titled Go-Live of the Central Bank of Nigeria Price Verification System Portal. 

The Price Verification System Portal is an online platform introduced by the CBN to ensure that the prices of goods and services for foreign exchange transactions are accurately verified. It aimed to prevent over-invoicing and under-invoicing, thus ensuring fair pricing in Nigeria’s import and export activities.

The Form ‘M’ is a declaration of intention to import physical goods into Nigeria and it is used to apply for forex purchase in the official forex market.

With the new directive, the apex bank said all applications for Form ‘M’, will now be validated without the need for a Price Verification Report generated from the PVS Portal.

The circular also noted that the Price Verification Report is no longer a requirement for completing a Form ‘M’.

The policy change aims to streamline processes for authorised dealer banks and the general public, potentially easing the procedural burden associated with foreign exchange transactions.