DEPOSIT Money Banks (DMBs) in Nigeria are set to start implementation of the directive from the Central Bank of Nigeria (CBN) requiring a discontinuation of the use of Price Verification System (PVS) for processing of Form M Effective July 1, 2024.
To this effect, the DMBs have started sending out messages to customers to prepare them for the implementation.
Form M is a mandatory statutory document to be completed by all importers for importation of goods into Nigeria.
One of the Banks, Fidelity Bank Plc, in its mail to customers said “Dear Esteemed Customer, Please be informed that the Central Bank of Nigeria has announced the discontinuation of the use of Price Verification System (PVS) for processing of Form M Effective July 1, 2024.
“All applications for processing Form M will now be submitted directly through Single Window platform. This eliminates the requirement to first generate a Price Verification Report on the PVS Portal before applying for Form M.”
This new measure according to CBN has become necessary given the recent development in the Foreign Exchange Market. It is also expected that the policy will help to fastract Form M processing.
“Kindly take note and submit your Forms M through the Single Window Portal for validation.”
The PVS Portal is an online platform introduced by the CBN to ensure that the prices of goods and services for foreign exchange transactions were accurately verified. It aimed to prevent over-invoicing and under-invoicing, thus ensuring fair pricing in Nigeria’s import and export activities.
Following a successful pilot run and in furtherance of its drive to ensure transparency and accuracy in trade transactions, the CBN had announced the official Go-Live of the Price Verification System (PVS) as of August 31st, 2023.
Consequently, all applications for Form M were expected to include a valid price verification report generated from the price verification portal.
This report has now become a mandatory trade document and is a prerequisite for the completion of a Form M.
According to the CBN, the latest policy change aims to streamline processes for authorised dealer banks and the general public, potentially easing the procedural burden associated with foreign exchange transactions.
The portal introduced during the tenure of former acting governor, FolashodunShonubi, was a build-up on the e-evaluator and e-invoice introduced by CBN in 2022 to replace hard copy final invoices in documentation processes for forex and monitor goods that are imported into Nigeria, as well as enable the collection of import duties where applicable.
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