Central Bank of Nigeria (CBN) has announced an upward review of the Price Verification System (PVS) from 2.5% to 15%.
According to a circular by Dr Hassan Mahmud, director, Trade and Exchange Department of the CBN, this is in a bid to check global inflation and other challenges.
The News Agency of Nigeria (NAN) reported that the PVS was initially introduced in 2022 to curb the over-invoicing of imports.
It was mandated to ensure that prices of imported items that were above 2.5% above the global average prices were queried.
The PVS is meant to streamline and regulate financial transactions and documentation in the banking sector to reduce over-pricing and ensure the price accuracy of imported goods.
According to Mahmud, due to global inflation and other related challenges, the CBN has reviewed the allowable limit of price deviation for exports and imports to -15% and +15% of global average prices respectively.
“Authorised dealer banks and the general public are hereby advised to note and comply accordingly,” he said.
He, however, said that the PVS was not meant to determine the actual prices of items for tariffs or duties charged by the government.
“It will, rather, enable the CBN to curtail the excess outflow of limited foreign exchange through over-invoicing and other price manipulation activities,” he stated.
