The Central Bank of Nigeria (CBN) has announced the discontinuation of its foreign exchange price verification system portal for importers, effective July 1, 2024. This move marks a significant shift in the procedures governing the importation of goods into the country.
In an official circular released on Wednesday, the CBN stated that the Price Verification Report, which was previously mandatory for completing a Form ‘M’—a declaration of intent to import physical goods into Nigeria—will no longer be required. This decision was attributed to recent developments in the Nigerian foreign exchange market.
Changes in Import Documentation
The circular, signed by W. J. Kanya, the Acting Director of the Trade and Exchange Department, was directed at all authorized dealer banks and the general public. Titled “Discontinuation Of The Central Bank Of Nigeria Price Verification System Portal,” it highlighted the CBN’s decision to simplify the import documentation process.
“We refer to the circular dated August 17, 2023, referenced TED/FEM/PUB/FPC/001/008 and titled ‘GO-LIVE OF THE CENTRAL BANK OF NIGERIA PRICE VERIFICATION SYSTEM PORTAL’ on the deployment of the Price Verification System,” the notice began. “Given recent developments in the Nigerian Foreign Exchange Market, the CBN hereby discontinues the Price Verification System.”
Historical Context
The price verification portal was introduced in August 2023 during the tenure of former Acting CBN Governor, Folashodun Shonubi. It was an extension of the e-evaluator and e-invoice system implemented by the CBN in 2022, which aimed to replace hard copy final invoices in FX documentation processes and monitor imported goods, thereby ensuring appropriate import duties were collected.
The system was initially mandatory for all Form ‘M’ requests as of August 31, 2023, but will now be phased out. The CBN’s decision reflects an adaptation to the evolving conditions of Nigeria’s foreign exchange market.
Implications for Importers
From July 1, 2024, all applications for Form ‘M’ will be processed without the need for a Price Verification Report. This change is expected to streamline the import process, reducing the bureaucratic burden on importers and potentially accelerating the flow of goods into Nigeria.
“For the avoidance of doubt, by this circular, the Price Verification Report is no longer a requirement for the completion of a Form ‘M’. Please note and be guided accordingly,” the notice concluded.
Industry Reactions
The CBN’s move to discontinue the price verification portal has sparked various reactions from stakeholders in the import and export sector. Some industry experts view it as a positive step towards simplifying import procedures, while others are cautious about the potential implications for market regulation and import duty collection.
Looking Forward
As the CBN adapts to new market realities, the discontinuation of the price verification system represents a significant policy shift aimed at enhancing the efficiency of Nigeria’s import system. Stakeholders will be closely monitoring the impact of this change on the broader economic landscape and the operational dynamics of importation in the country.
