The Nigerian Economic Summit Group (NESG) has noted its support for the Central Bank of Nigeria’s (CBN) decision to discontinue the Price Verification System Portal used by importers.
The CBN recently announced that it will stop its Price Verification System (PVS) Portal, effective July 1, 2024, owing to recent developments in the Nigerian Foreign Exchange Market.
The circular explicitly stated that the Price Verification Report was no longer a requirement for completing a Form ‘M’.
The Price Verification System 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.
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It aimed to prevent over-invoicing and under-invoicing, thus ensuring fair pricing in Nigeria’s import and export activities.
According to a recent report by the NESG, the decision “was a direct outcome of the collaborative effort of the NESG and the CBN in engaging with business leaders.”
“At the recent NESG-convened meeting, in partnership with the CBN, business leaders articulated significant concerns regarding the Price Verification System Portal, noting its impact on operational efficiency and importation processes,” the report said.
“In response, the CBN has acted to enhance the business environment by eliminating the mandatory Price Verification Report for the completion of Form ‘M’,” it stated.
The NESG also stated that discontinuing the price verification system will significantly boost manufacturing and industrial output by ensuring an efficient importation process for businesses.
“The manufacturing sector will benefit from timely access to essential inputs. This will enable higher production levels and enhance the sector’s contribution to GDP,” it said.
The removal of the price verification system would also enable Nigerian businesses to be globally competitive and expand their export potential, according to the report.
“The reduction in bureaucratic bottlenecks will make Nigerian businesses more competitive globally. Lower operational costs and improved efficiency will enable businesses to offer more competitive prices, increase market share, and expand their export potential,” it said.
The report further stated tahte the the policy change aligned with the “CBN’s mandate of maintaining price stability and promoting sustainable economic growth.”
“By reducing the cost of doing business and enhancing supply chain efficiency, the policy is expected to exert downward pressure on production costs, thereby contributing to inflation moderation. Moreover, increased economic activity and investment will support higher output growth, reinforcing the stability and resilience of the Nigerian economy,” it said.
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In May, business conditions in the Nigerian private sector improved modestly, but was still less pronounced than the historical trend, according to Stanbic IBTC Bank’s Purchasing Managers Index.
“The headline PMI posted 52.1 in May, up from 51.1 in April and the highest since January. Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration,” the PMI stated.
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