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.

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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.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.