Nigeria’s central bank forestalls overpricing of imported goods with new mechanism

The Central Bank of Nigeria (CBN) will be introducing a new pricing mechanism known as Price Verification Mechanism (PVM) to forestall overpricing and/or mispricing of goods and services imported into the country.

In a circular on Monday, Nnaji O.S, CBN’s director, trade and exchange department, said the new pricing mechanism, which takes immediate effect, is in line with best practices around the world.

The CBN also directed all authorised dealers to desist from opening of Forms M whose payment are routed through a buying company/agent or any other third parties.

This is part of regulator’s continued efforts to ensure prudent use of the nation’s foreign exchange resources and eliminate incidences of over-invoicing, transfer pricing, double handling charges, and avoidable costs that are ultimately passed to the average Nigerian consumers.

The circular to all authorised dealers and general public on ‘Destination Payment for All Forms M, Letters of Credit and Other Forms of Payment’ was dated August 24, 2020.