Ten Months After Introduction, CBN Stops Forex Price Verification System For Importers

The Central Bank of Nigeria (CBN) has stopped the foreign exchange (FX) Price Verification System (PVS) portal used by importers ten months after introduction.

The apex bank disclosed this on Thursday in a circular signed by the Director of Trade and Foreign Exchange Department, J. Kanya.

The PVS portal was introduced in August 2023 and was mandatory for all Form M requests.

But in the fresh development, the apex bank said importers would no longer need the portal to validate Form M applications from July 1.

The CBN said, “We refer to the circular dated August 17, 2023, referenced TED/FEM/PUB/FPC/001/008 and titled Price Verification System Portal’ on the deployment of the Price Verification System (PVS).

“Given recent developments in the Nigerian Foreign Exchange Market, the CBN hereby discontinues the Price Verification System (PVS).

“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.

“For the avoidance of doubt, by this circular, the Price Verification Report is no longer a requirement for the completion of a Form ‘M’.”

Recall that the CBN introduced the PVS portal to check overpricing of imports and underpricing.

When it was first introduced, the system flagged any declared prices of import items exceeding global average prices by more than 2.5 per cent.

But the limit was expanded to a range of -15 per cent to +15 per cent rise in the allowable limit for price verification.