Victor EzejaThe Central Bank of Nigeria has discontinued its Price Verification System (PVS) required for validation of Form M application.
In a circular released on Wednesday, 26 June, the apex bank said the discontinuation takes effect from 1 July 2024.
Join our WhatsApp ChannelIt referenced a previous circular dated August 17, 2023, titled “Go-Live of the Central Bank of Nigeria Price Verification System Portal, ” when the bank commenced the operation.
According to the circular signed by the Acting Director of the Trade & Exchange Department, CBN, W.J. Kanya, the decision followed recent developments in the Nigeria’s foreign exchange market.
The bank had introduced the Price Verification System Portal to ensure a fair assessment of request for access to foreign exchange by importers.
However, the CBN said that with the new directive, price verification in the portal is no longer required before Form ‘M’ can be validated.
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The circular titled “Discontinuation of the Central Bank Of Nigeria Price Verification System Portal,” reads: “We refer to the circular dated August 17, 2023 referenced
TED/FEM/PUB/FPC/001/008 and titled “GO-LIVE OF THE CENTRAL BANK OF NIGERIA PRICE VERIFICATION SYSTEM PORTAL” on the deployment of the Price Verification System (PVS).
“In view of recent developments in the Nigerian Foreign Exchange Market, the CBN hereby discontinues the Price Verification System (PVS).
“Consequently, with effect from July 01, 2024 all applications for Form ‘M shall be validated without the Price Verification Report generated from the Price Verification Portal.
“For the avoidance of doubt, by this circular the Price Verification Report is no longer a requirement for the completion of a Form “M’.”
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The purpose of this policy adjustment is to reduce the administrative burden that comes with foreign exchange transactions by streamlining procedures for authorized dealer banks and the general public.
Form M is a mandatory statutory document to be completed by all importers for importation of goods denominated in foreign currency into Nigeria on CBN Single window.
It is used to apply for purchase of forex in the official forex market.
The PVS which was introduced in August 2023, was trailed by criticisms from importers, and various groups including Manufacturing Association of Nigeria (MAN), and Licensed Customs Agents, who said it placed unnecessary restrictions and gravely affected their businesses.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
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