CBN abandons price verification portal, form M for Cargo clearance, gives reasons

The Central Bank of Nigeria (CBN) announced on Wednesday, June 26, 2024, that it will stop its Price Verification System (PVS) Portal beginning July 1, 2024.

The decision comes amid recent developments in the Nigerian foreign exchange market.

The apex bank announced in a circular issued by W.J. Kanya, the acting director of the trade and exchange department, citing a previous circular dated August 17, 2023.

The Price Verification System Portal is a virtual platform introduced by the apex bank to authenticate the fair prices of goods and services for foreign exchange transactions that are correctly verified.

It aimed to prevent over-invoicing and under-invoicing and ensure fair pricing in Nigeria’s import and export activities.

The new order now means that all Form ‘M’ applications will be authenticated without resorting to the Price Verification Portal Report generated from the PVS Portal.

The circular states that the Price Verification Report is no longer required to complete Form ‘M’.

According to reports, the policy change intends to streamline processes for authorized dealer banks and the general public, easing the procedural burden associated with FX transactions.

The report said that banking and finance stakeholders are asked to note these changes and adjust their procedures accordingly.

The development comes as CBN and the Nigeria Customs Service have not adjusted the foreign exchange rate for cargo clearance for weeks.

The CBN left the exchange rate for import duties unchanged in the last three weeks. The official forex rate continued to hover around N1,485 per dollar before plummeting to N1,507 on Monday, June 24, 2024.

The FX rate stayed at N1,474 per dollar for the last three weeks, the longest since January 2024, before crashing on Monday, June 24, 2024.

Importers would expect an adjustment following the recent crash of the Nigerian currency against the US dollar.

The development comes as the naira relatively stabilized in the past few weeks following months of volatility that has seen it crash near N1,500 per dollar.

In an interview, one of the importers, John Ohanaele, told Legit.ng that the order means that importers will now go directly to their banks and currency dealers to seek FX for transactions.

“Even though there is a bit of confusion in the new directive by CBN, importers are also pleased as it has eased FX transactions for us. “In the past, we always had to wait to see what the next FX rate would be before opening Form M.”