The Central Bank of Nigeria (CBN) announced yesterday that it has discontinued the Price Verification System (PVS) and the associated report as criteria for importers to access foreign exchange.
In a circular addressed to banks and the general public, Dr. W.J. Kanya, Acting Director of the Trade and Exchange Department at CBN, stated that the Price Verification Report from the portal will no longer be required for the completion of Form ‘M’. This move, effective from July 1, 2024, means that all applications for Form ‘M’ will be validated without the need for a Price Verification Report.
The circular titled “Discontinuation of the Central Bank of Nigeria Price Verification Portal” 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’.”
The PVS, introduced in August 2023, was initially mandated for all Form ‘M’ requests as part of the criteria for importers to access foreign exchange. The Form ‘M’ is a declaration of intent to import goods into Nigeria and is used to apply for forex purchases in the official market.
The introduction of the PVS faced criticism from various importers and private sector groups, including the Manufacturing Association of Nigeria (MAN) and the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA).
Segun Ajayi-Kadir, Director General of MAN, commented, “We look forward to the reversal of so many unnecessary restrictions that were placed by the CBN. One of them is the price verification portal which for all practical purposes is quite unnecessary. It is affecting the businesses of our members who are not able to import raw materials, machines, and parts because the prices that they bought do not fall into the threshold of the portal. I think it is limiting businesses. The CBN should discontinue the operation of that portal.”
Members of the NCMDLCA also opposed the PVS, arguing that it contravened the Customs and Excise Management (Amendment) Act 20 of 2003 and the Nigeria Customs Service Act 2023 regarding the valuation of imports. In a letter to the President, the Secretary to the Government of the Federation, and the Chairman of the Senate Committee on Customs and Excise, Mr. Lucky Amiwero, founder of NCMDLCA, stated: “This valuation process is clearly outlined in the law that governs the valuation of imported goods. We have observed that if such implementation is allowed, it will lead to duplication and cumbersome procedures in our import and export system, particularly for those who are not experts in valuation and import-export procedures. We eagerly await an urgent response to address this economic situation.”
The discontinuation of the PVS is expected to ease the importation process and reduce the regulatory burden on importers in Nigeria.
