Central Bank of Nigeria (CBN) has announced a significant adjustment to the Price Verification System (PVS), raising the limit from 2.5 percent to 15 percent.
The decision, revealed in a circular by Dr. Hassan Mahmud, Director of the Trade and Exchange Department of the CBN, aims to address the challenges posed by global inflation.
Initially introduced in 2022, the PVS was implemented to counter over-invoicing of imports. It mandated scrutiny of prices for imported items exceeding 2.5 percent above the global average.
The system is designed to regulate financial transactions and documentation in the banking sector, reducing over-pricing, and ensuring the accuracy of imported goods’ pricing.
Dr. Mahmud explained that, due to the impact of global inflation and related challenges, the CBN has revised the allowable limit of price deviation for exports and imports to -15 percent and +15 percent of global average prices, respectively.
He emphasized that authorized dealer banks and the public must take note and comply with the updated limits.
“Authorised dealer banks and the general public are now advised to note and comply accordingly,” he stated.
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Dr. Mahmud equally clarified that the PVS’s primary purpose is not to determine the actual prices for government tariffs or duties. Instead, it enables the CBN to mitigate the excess outflow of limited foreign exchange by addressing issues such as over-invoicing and price manipulation activities.
“It will, rather, enable the CBN to curtail the excess outflow of limited foreign exchange through over-invoicing and other price manipulation activities,” he added.