CBN introduces FX price verification system portal for importers

The Central Bank of Nigeria (CBN) has launched a foreign exchange (FX) price verification system (PVS) portal to facilitate importers’ access to forex.

As indicated in a statement released on Thursday evening, the CBN has made it compulsory for all Form M requests, starting from August 31, 2023, to be accompanied by a price verification report from the portal.

Form ‘M’ serves as a declaration of intent to import physical goods into Nigeria.

The statement stated, “Following the successful pilot run and comprehensive training conducted with all banks, the Central Bank of Nigeria hereby announces the official launch of the Price Verification System (PVS).”

Henceforth, all applications for Form M should be supported by a valid price verification report generated through the price verification portal. This circular reinforces the necessity of a price verification report as a prerequisite for completing Form M.

The CBN has directed all authorized dealers to ensure that their customers are informed of this change.

The CBN emphasized that any violations would incur appropriate penalties and urged exporters to adhere to the directive.

In June 2023, the CBN initiated the unification of all segments within the foreign exchange (FX) market, signaling a departure from its control of forex rates. As a result of this decision, the value of the local currency, the naira, has experienced considerable fluctuations influenced by market dynamics.

The naira recently touched a record low of N950 to the dollar in the parallel market, subsequently recovering to N890 against the dollar. The CBN had announced plans to implement new measures aimed at stabilizing the naira against the dollar.

While it remains uncertain whether the PVS portal is part of these measures, the Nigerian National Petroleum Corporation (NNPC) Limited secured a $3 billion emergency crude repayment loan to support the naira and restore stability to the FX market.