In a significant move aimed at streamlining and enhancing the foreign exchange (FX) market in Nigeria, the Central Bank of Nigeria (CBN) has introduced the Foreign Exchange (FX) Price Verification System (PVS) portal. This innovative platform, designed with the intention of providing importers easier access to forex, was officially announced by the CBN’s Trade and Exchange Department on Thursday night.
The central bank expressed its satisfaction with the successful pilot run and comprehensive training sessions conducted with all banks, paving the way for the official launch of the Price Verification System (PVS). Effective August 31, 2023, the price verification report generated through this portal will become a mandatory requirement for all Form M requests.
Form M, a fundamental statutory document mandatory for all importers, serves as a prerequisite for the importation of goods into Nigeria. Its validity spans 180 days for general merchandise and 365 days for plant and machinery, extendable upon application to relevant authorities.
To facilitate the process, the CBN stipulated that “all applications for Form M shall be accompanied by a valid price verification report generated from the price verification portal. For the avoidance of doubt, by this circular, the price verification report has become a mandatory trade document precedent to the completion of a Form M.”
The central bank further emphasized its expectation that authorized dealers diligently inform their customers of this change. It also warned that any failure to comply with the new guidelines would be met with appropriate sanctions.
This development follows the CBN’s decision in June 2023 to unify all sectors of the foreign exchange (FX) market, thereby relinquishing its direct control over forex rates. Consequently, the Nigerian local currency’s exchange rate has experienced considerable volatility as market forces exert their influence on pricing.
In a bid to enhance transparency and efficiency in the FX market, the launch of the FX Price Verification System (PVS) is poised to usher in a new era of import-related forex transactions in Nigeria. As the August 31 deadline approaches, importers, authorized dealers, and stakeholders across the spectrum are urged to familiarize themselves with the new process to ensure a smooth transition.
For more information, please visit: CBN Launches FX Price Verification System Portal.
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