CBN sets up FX price verification system portal for importers

• The apex bank said a price verification report from the portal is now mandatory for all Form M requests, effective from August 31, 2023
• The Form ‘M’ is a declaration of intention to import physical goods into Nigeria

A foreign exchange (FX) price verification system (PVS) portal has been created to enable importers to access forex, the Central Bank of Nigeria (CBN) has disclosed.

The CBN made the disclosure in a statement on Thursday night.

The apex bank said a price verification report from the portal is now mandatory for all Form M requests, effective from August 31, 2023.

The Form ‘M’ is a declaration of intention to import physical goods into Nigeria.

“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.

“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 authorised dealers are, hereby, advised to bring this to the attention of their customers”.

CBN also said any case of infraction would be appropriately sanctioned.

“Please, ensure compliance,” the bank urged exporters.

In June 2023, the CBN announced the unification of all segments of the foreign exchange (FX) market, signalling the end of its control of the forex market.

Since the decision — which was in compliance with the federal government’s directive — the exchange rate of the local currency has been experiencing significant instability as market forces continue to determine prices.

Last week, the naira fell to an all-time low of N950 to the dollar at the parallel market, before recovering to N890 at the black market of the FX market.

The recovery came after the CBN said it would implement new measures to stabilise the naira against the dollar.

While it is unclear if the PVS portal is part of the said measures; on Wednesday, the Nigerian National Petroleum Corporation (NNPC) Limited, secured a $3 billion emergency crude repayment loan to support the naira and stabilise the FX market.