CBN Launches FX Price Verification Portal for Importers

On Thursday night, the Central Bank of Nigeria (CBN) introduced a foreign exchange (FX) price verification system (PVS) portal to assist importers have access to forex.

Upon the announcement on Thursday night, the CBN said that the price verification report from the portal is now mandatory for all Form M requests, which will take effect from August 31, 2023.

The Form 'M' is a declaration of intention to import physical goods into Nigeria. It's a mandatory document that needs to be completed by any individual or group intending to import physical goods into the country. Whether the goods are in exchange for payment or not, Form M must be completed.

This process is to give transparency in forex transactions which will have the details on how the customers got the foreign currency and at what rate the country currency was converted.

There have been complaints of round-tripping, especially against banks and their officials, putting pressure on the Nigerian Naira in the FX market which has further added to the devaluation of the country's currency.

Remember that the apex bank governor said some days back after meeting with Bola Tinubu on ways to tackle the devaluation of the Naira. After the meeting, Folashodun Shonubi told State House journalists at the Presidential Villa that speculators of the naira will witness more loss with the new policy that will be released soon. Investingport reported this!

So according to reports, this is one of many reforms that we will be seeing soon. 

The circular which was released on Thursday night reads:

“Following the successful conduct of the pilot run and various trainings held with all the banks, the Central Bank of Nigeria hereby announces the Go- Live of the Price Verification System (PVS).”

“Consequently, with effect from August 31, 2023, all applications for Forms M shall be accompanied by a valid price verification report generated from the price verification portal.”

“For the avoidance of doubt, by this circular, the price verification report has become a mandatory trade document precedent to the completion of a Form M.”

“All authorized dealers are, hereby, advised to bring this to the attention of their customers,”

“Please, ensure compliance,” the apex bank added.

Back Story

In June 2023, the Central Bank of Nigeria announced the unification of the Naira to the Dollar at all the segments of the forex market.

Ever since this decision, which was supposed to be the best so far, the exchange rate of the local currency has not yielded positive as volatility is still on the rise as market forces continue in determining its prices.

The naira saw a significant drop as it fell to an all-time low of N950 to the dollar at the parallel market before recovering at the FX black market at N890. The recovery experienced recently was after the CBN said it was going to put out measures to stabilize the naira against the dollar which will stop the devaluation of its country currency.

In a bid to save the naira, the Nigerian National Petroleum Corporation (NNPC) obtained a $3 billion emergency crude repayment plan to support the CBN in the fight against the devaluation of the naira.