The Central Bank of Nigeria (CBN) has introduced a foreign exchange price verification system aimed at providing importers with access to foreign exchange. This system, known as the Price Verification System (PVS), requires importers to obtain a valid Price Verification Report from the system, which will be mandatory for all Form M requests starting from August 31, 2023. Form M is a statutory document that importers need to complete for importing goods into Nigeria.
Here are 10 key takeaways from the introduction of the CBN’s forex price verification system:
The Price Verification System (PVS) will become operational on August 31.
For all Form M applications, a valid Price Verification Report generated exclusively from the newly established PVS must be included.
The Price Verification Report will be a prerequisite trade document necessary for completing Form M.
Form M is a mandatory documentation process introduced by the CBN and Nigeria Customs to monitor imported goods and facilitate the collection of import duties.
The PVS aims to streamline and regulate financial transactions and documentation in the banking sector.
The PVS builds upon the e-evaluator and e-Invoice systems introduced by the CBN in 2022, which aimed to replace hard copy final invoices in import and export transactions.
Transactions involving imports and exports with prices differing by more than 2.5% from the verified prices will be queried and might not be approved for Form M.
Importers and exporters of goods and services in and out of Nigeria are required to register on the CBN’s dedicated electronic portal managed by an appointed service provider.
Upon successful registration and authentication, the system will issue a verification report and a digital certificate to the importer or exporter, valid for one year.
A yet-to-be-confirmed annual subscription fee (previously reported as $350) will be charged for each authentication of suppliers on the system.
The introduction of the Price Verification System is part of the CBN’s efforts to enhance transparency and accountability in the foreign exchange market and trade transactions in Nigeria.