The Central Bank of Nigeria (CBN) has officially discontinued its Price Verification System (PVS) portal just ten months after its launch.
The announcement, made through a circular dated June 26, 2024, indicated that recent developments in the Nigerian Foreign Exchange Market necessitated this decision.
The official circular from the CBN, signed by Dr W. J. Kanya, Acting Director of the Trade & Exchange Department, states that effective July 1, 2024, all applications for Form M will be validated without the need for a Price Verification Report from the PVS portal.
The circular read: “We refer to the circular dated August 17, 2023, referenced TED/FEM/PUB/FPC/001/008 and titled ‘GO-LIVE OF THE CENTRAL BANK OF NIGERIA PRICE VERIFICATION SYSTEM PORTAL’ on the deployment of the Price Verification System (PVS). In view of 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’.”
What you should know
The PVS, introduced on August 17, 2023, was designed to enhance transparency, accountability, and standardization in trade operations across Nigeria.
It mandated that all applications for Form M, a key document required for import transactions, include a Price Verification Report generated exclusively from the PVS portal.
This move aimed to curb malpractices such as over-invoicing of imports and under-invoicing of exports, thus protecting Nigeria’s foreign exchange reserves.
However, the PVS faced significant opposition from various stakeholders. Customs agents and other parties argued that the system contradicted existing laws governing the valuation of imported goods and duplicated the functions performed by the Nigeria Customs Service.
Critics highlighted that the additional requirement added unnecessary bottlenecks and complexities to the import-export process.
Amid the criticism, the CBN adjusted the allowable deviation limits for the PVS due to persistent global inflation. Initially, the system flagged any declared prices of import items exceeding global average prices by more than 2.5%. However, this limit was expanded to a range of -15% to +15%, representing a 500% increase in the allowable limit for price verification.
The CBN believes this measure will provide more flexibility in the face of fluctuating global prices while preventing the exploitation of the system.
The discontinuation of the PVS reflects the CBN’s responsiveness to stakeholder feedback and the evolving dynamics of the foreign exchange market.