By 
The Nigerian Economic Summit Group (NESG) has expressed support for the Central Bank of Nigeria’s (CBN) recent decision to discontinue the Price Verification System (PVS) for foreign exchange transactions. This move, according to NESG, will eliminate regulatory bottlenecks and enhance macroeconomic stability.
In a recent circular, the CBN announced that, effective July 1, importers will no longer need to validate applications for Form ‘M’ through the Price Verification Report from the PVS.
The circular, issued by W.J. Kanya, Acting Director of the Trade & Exchange Department, referenced a previous circular dated August 17, 2023, titled “Go-Live of the Central Bank of Nigeria Price Verification System Portal.”
The Price Verification System Portal was an online platform introduced by the CBN to ensure accurate verification of prices for goods and services involved in foreign exchange transactions. The system aimed to prevent over-invoicing and under-invoicing, ensuring fair pricing in Nigeria’s import and export activities.
With the new directive, all applications for Form ‘M’ will now be validated without needing a Price Verification Report from the PVS Portal.
The policy change intends to simplify processes for authorized dealer banks and the general public, potentially easing the procedural burden associated with foreign exchange transactions.
Welcoming the CBN’s decision in a communique released over the weekend, the NESG noted, “A more efficient importation process will benefit the manufacturing sector by providing timely access to essential inputs, enabling higher levels of production and enhancing the sector’s contribution to GDP. The increase in industrial output will positively affect other sectors, further stimulating economic activity.”
The NESG also emphasized that reducing bureaucratic hurdles will make Nigerian businesses more competitive globally. “Lower operational costs and improved efficiency will enable businesses to offer more competitive prices, increase market share, and expand their export potential. This will contribute to a favorable balance of trade and strengthen Nigeria’s position in the global economy.”
Furthermore, the policy change aligns with the CBN’s core mandate of maintaining price stability and promoting sustainable economic growth. “By reducing the cost of doing business and enhancing supply chain efficiency, the policy is expected to exert downward pressure on production costs, thereby contributing to inflation moderation. Moreover, increased economic activity and investment will support higher output growth, reinforcing the stability and resilience of the Nigerian economy,” the NESG added.
Comments