The Central Bank of Nigeria has announced it will no longer use the Price Verification System as a requirement for importers to access foreign exchange.

This change was disclosed by the Acting Director of the Trade and Exchange Department at the CBN, Dr. W.J. Kanya, in a circular to banks and the public.

The circular, titled ‘Discontinuation of the Central Bank of Nigeria Price Verification Portal’, stated: “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’.”

The PVS was introduced in August 2023 to ensure that importers used verified prices for goods, making it mandatory for all Form M requests. The Form ‘M’ is a declaration of intention to import physical goods into Nigeria and is used to apply for forex purchases in the official forex market.

The introduction of the PVS faced criticism from importers and private sector groups, including the Manufacturing Association of Nigeria and the National Council of Managing Directors of Licensed Customs Agents.

“We look forward to the reversal of so many unnecessary restrictions that were placed by the CBN. One of them is the price verification portal which for all practical purposes is quite unnecessary,” said the Director General of MAN, Segun Ajayi-Kadir.

He added, “It is affecting the businesses of our members who are not able to import raw materials, machines, and parts because the prices that they bought do not fall into the threshold of the portal. I think it is limiting businesses. The CBN should discontinue the operation of that portal.”

Members of the NCMDLCA also criticized the PVS, stating it “contravened the Customs and Excise Management (Amendment) Act 20 of 2003/ Nigeria Customs Service Act 2023 on the valuation of import.”

In a letter addressed to the President, Secretary to the Government of the Federation, and Chairman of the Senate Committee on Customs and Excise, the founder of NCMDLCA, Mr. Lucky Amiwero, said: “This valuation process is clearly outlined in the law that governs the valuation of imported goods. We have observed that if such implementation is allowed, it will lead to duplication and cumbersome procedures in our import and export system, particularly for those who are not experts in valuation and import-export procedures. We eagerly await an urgent response to address this economic situation.”