BrandArena: CBN Introduces Price Verification System Portal to Enhance Transparency in Forex Transactions

Friday, 18 August 2023

CBN Introduces Price Verification System Portal to Enhance Transparency in Forex Transactions

The Trade and Exchange Department of the Central Bank of Nigeria has created a Foreign Exchange (FX) Price Verification System (PVS) portal. This action attempts to help importers gain access to foreign currency, addressing the country's chronic currency problems.

Dr. Ozoemena Nnaji, Director of the CBN's Trade and Exchange Department, announced the news in a circular. The circular acknowledged the effective conclusion of the pilot phase as well as the training sessions with domestic banks.

Given the current currency crisis, the launch of the Price Verification System (PVS) portal is a big step forward. Starting on August 31, the Central Bank requires all Form M applications to submit a valid price verification report obtained through the PVS portal. Accurate price information is critical in the foreign exchange process, emphasising the importance of this requirement.

The Central Bank of Nigeria (CBN) and the Nigeria Customs Service (NCS) created Form M, an online documentation method. This procedure is required for all importers who want to bring items into Nigeria. Its principal function is to closely monitor imported commodities and aid in the collection of necessary import duties.

To initiate the Form M procedure, importers need to have the following essential documents:
  • Certificate of Incorporation/Registration: This document verifies the company’s legal status in Nigeria.
  • Registration with Federal Inland Revenue Services (FIRS): Importers must be registered with FIRS, the tax authority in Nigeria.
  • Proforma Invoice: A detailed and preliminary invoice that outlines the expected costs and details of the imported goods.
  • Insurance: Proof of insurance coverage for the goods being imported.
  • Product Certificate (PC): For items that fall under the regulation of the Standards Organization of Nigeria (SON), a Product Certificate is required to demonstrate compliance with standards and regulations.
  • These requirements ensure a streamlined process for importation, allowing for efficient monitoring and appropriate duties to be collected.
A Form M has a lifespan of 180 days for general commerce and 365 days for plant and machinery. The Authorised Dealer can issue a 180-day (for general items) or 365-day (for plant and machinery) extension if necessary. Any such extension requires clearance from the Central Bank of Nigeria (CBN).

The CBN's launch of the price verification system portal aims to improve transparency in FX transactions. This system will keep track of how clients obtained foreign currency as well as the corresponding exchange rates.

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