10 Key Takeaways From CBN’s Forex Price Verification System

A foreign exchange price verification system designed for importers to have access to forex has been introduced by the Central Bank of Nigeria.

The apex bank in a statement from its Trade and Exchange Department on Thursday night said a price verification report from the portal is now mandatory for all Form M requests while it takes effect from August 31, 2023.

Form M is a mandatory statutory document to be completed by all importers for the importation of goods into Nigeria, according to the CBN.

The statement read, “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),” the statement reads.

In this report, The PUNCH highlights 10 key takeaways from the CBN forex price verification system which is a build-up on the e-evaluator and e-Invoice introduced by CBN in 2022 to replace hard copy final invoices in documentation processes for FX, below;

1. The Go-live of Price Verification System will be active on August 31.

2. All applications for Forms M must be accompanied by a valid Price Verification Report, which can be generated exclusively from the newly established Price Verification System.

3. Price Verification Report will now be a prerequisite trade document required for the completion of Form M.

4. Form M is a mandatory documentation process introduced by CBN and the Nigeria Customs put in place by the Federal Government of Nigeria through the Federal Ministry of Finance to monitor goods that are imported into Nigeria, as well as enable the collection of import duties where applicable.

5. The PVS will help streamline and regulate financial transactions and documentation in the banking sector.

6. The PVS is a build-up on the e-evaluator and e-Invoice introduced by CBN in 2022 to replace hard copy final invoices which was part of the documentation required for all import and export transactions.

7. Imports and exports with prices more than 2.5% of the verified prices will be queried and will not be approved for Form M.

8. Importers and exporters of goods and services into and out of Nigeria are required to register on CBN’s dedicated electronic portal operated by CBN’s appointed service provider.

9. Upon successful registration and authentication, a verification report and digital certificate will be issued to the importer/exporter, which is valid for one year.

10. An annual subscription fee of an unconfirmed fee (previously $350) will be charged per authentication of suppliers on the system.

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Source: The PUNCH