Key Takeaways from CBN's Forex Price Verification System

The Central Bank of Nigeria (CBN) has recently implemented a foreign exchange price verification system aimed at providing importers with access to forex. This new system is set to revolutionize financial transactions and documentation in the banking sector. In this blog post, we will delve into the 10 key takeaways from the CBN's forex price verification system, including the mandatory requirements, the role of the Price Verification Report, and the implications for importers and exporters.

1. Go-Live Date and Activation:

As of August 31, the Price Verification System will be fully operational, making it mandatory for all Form M requests to be accompanied by a valid Price Verification Report generated exclusively from the newly established system.

2. Price Verification Report as Prerequisite:

The Price Verification Report will now be a prerequisite trade document required for the completion of Form M. Form M is a mandatory documentation process introduced by the CBN and the Nigeria Customs to monitor imported goods and enable the collection of import duties, where applicable.

3. Streamlining Financial Transactions:

The Price Verification System (PVS) is a build-up on the e-evaluator and e-Invoice introduced by the CBN in 2022, which replaced hard copy final invoices for import and export transactions. The PVS aims to streamline and regulate financial transactions and documentation in the banking sector.

4. Compliance with Verified Prices:

Imports and exports with prices exceeding 2.5% of the verified prices will be queried and not approved for Form M. This measure ensures compliance with the verified prices and discourages price manipulation.

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5. Registration on CBN's Electronic Portal:

Importers and exporters of goods and services into and out of Nigeria are required to register on the dedicated electronic portal operated by the CBN's appointed service provider. This registration process is essential for accessing the Price Verification System.

6. Issuance of Verification Report and Digital Certificate:

Upon successful registration and authentication, importers and exporters will receive a verification report and digital certificate, valid for one year. This process ensures the authenticity and credibility of the traders involved in the import/export transactions.

7. Annual Subscription Fee:

To cover the costs associated with authentication, an annual subscription fee will be charged per authentication of suppliers on the system. The exact fee amount is yet to be confirmed.

The implementation of the Central Bank of Nigeria's forex price verification system marks a significant step towards streamlining financial transactions and documentation in the banking sector. With the introduction of the Price Verification Report as a prerequisite for Form M requests, importers and exporters will be required to comply with verified prices, ensuring transparency and discouraging price manipulation. By registering on the CBN's dedicated electronic portal, traders can access the Price Verification System, receive verification reports and digital certificates, and contribute to the overall efficiency of import and export transactions in Nigeria.