In a move aimed at enhancing transparency and efficiency in the foreign exchange landscape, the Central Bank of Nigeria (CBN) has unveiled the Foreign Exchange Price Verification System. The announcement, made by the CBN’s Trade and Exchange Department, comes as a strategic step to empower importers with improved access to foreign exchange (forex) while ensuring adherence to accurate pricing.
The CBN’s decision, disclosed on a recent Thursday night, signifies a significant shift in the forex application process. Starting from August 31, 2023, individuals and businesses seeking to initiate Form M applications must first engage with the newly launched Price Verification System. This system is specifically designed to validate and confirm the costs associated with their intended imports.
The official statement issued by the CBN underscored the successful pilot run and comprehensive training sessions conducted with all partnering banks, paving the way for the full-scale implementation of the Price Verification System (PVS). The purpose of this system is to establish a standardized and transparent mechanism for assessing the accuracy of prices related to forex applications.
As per the new directive, all applications for Form M must be accompanied by a valid price verification report, which is generated through the designated price verification portal. This report has now become a compulsory trade document, serving as a prerequisite for completing a Form M application.
The CBN’s announcement also carries a message to all approved forex dealers, urging them to communicate this regulatory change effectively to their clientele. The directive emphasized that strict adherence to these guidelines is paramount and violators will be subject to appropriate penalties as stipulated by the relevant regulations.
In its concluding statement, the apex bank reinforced its call for compliance, emphasizing that this step is integral to ensuring the effectiveness of the new forex price verification process. The introduction of the Foreign Exchange Price Verification System underscores the CBN’s commitment to streamlining forex operations, fostering transparency, and creating a level playing field for importers in Nigeria.