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