A foreign exchange pricing verification mechanism has been launched by the Central Bank of Nigeria to provide importers access to foreign currency.
A price verification report from the portal is now required for all Form M requests starting on August 31, 2023, according to a statement from the apex bank’s Trade and Exchange Department on Thursday evening.
According to the CBN, Form M is a required legal document that must be filled out by all importers in order to import 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),” reads the announcement.
The PUNCH identifies ten major insights from this report on the CBN forex price verification system, which is a development of the e-evaluator and e-Invoice established by CBN in 2022 to replace paper copy final invoices in documentation processes for FX;
1. The Price Verification System will go live and be operational on August 31.
2. All Forms M applications must be supported by a current Price Verification Report, which can only be produced through the recently formed Price Verification System.
3. As of present, the Price Verification Report is a prerequisite trade document needed to complete Form M.
4. The Federal Ministry of Finance of the Federal Republic of Nigeria implemented the Form M paperwork requirement, which was developed by the CBN and the Nigeria Customs, to track the importation of commodities into Nigeria and to make it possible to collect import duties when necessary.
5. The PVS will aid in the banking industry’s streamlining and regulation of financial transactions and documentation.
6. The PVS is an expansion of the e-evaluator and e-Invoice that CBN developed in 2022 to replace the paper copy final invoices that were a necessary component of the documentation for all import and export operations.
7. Exports and imports whose prices exceed 2.5% of the confirmed prices will be questioned and not be permitted to submit Form M.
8. The CBN’s designated service provider’s specialised electronic portal is where importers and exporters of goods and services into and out of Nigeria must register.
9. After successful registration and authentication, the importer or exporter will receive a verification report and a digital certificate that is good for a year.
10. Each provider who is authenticated on the system will be charged an annual subscription fee of an unknown fee (formerly $350).
