The Central Bank of Nigeria (CBN) has introduced a foreign exchange price verification system aimed at improving transparency and efficiency in the allocation of foreign exchange for imports. The system requires importers to provide a valid price verification report from the newly established portal as part of their Form M requests.
Form M is a mandatory documentation process for importation in Nigeria, and the introduction of the price verification report aims to ensure that importers accurately declare the prices of goods they intend to import. This move is intended to prevent over-invoicing and under-invoicing of imports, which can have negative effects on the country’s foreign exchange reserves and revenue.
By making the price verification report a mandatory requirement for Form M requests, the CBN aims to enhance accountability and reduce the risk of fraudulent activities in the foreign exchange market. The system is part of the CBN’s efforts to maintain stable foreign exchange rates and ensure the efficient allocation of foreign exchange resources.
This new system aligns with broader efforts to improve Nigeria’s trade environment, prevent capital flight, and enhance economic transparency. However, successful implementation will require collaboration between the CBN, authorized dealers, and importers to ensure compliance and prevent any attempts to manipulate the system.