The Price Verification System (PVS) will now be reviewed upward, from 2.5 percent to 15 percent, according to the Central Bank of Nigeria (CBN).
This is an attempt to control global inflation and other issues, according to a circular from Dr. Hassan Mahmud, Director of the CBN’s Trade and Exchange Department.
In 2022, the PVS was first implemented in order to reduce the practice of over-invoicing imports, according to the News Agency of Nigeria (NAN).
It was mandatory to make sure that import prices exceeding 2.5 percent above the average worldwide were questioned.
The purpose of the PVS is to guarantee the accuracy of import goods prices and minimise overpricing by streamlining and regulating financial transactions and documentation in the banking industry.
Mahmud says the CBN has reviewed the permissible limit of price deviation for imports and exports to +/-15 percent and -15 percent of the world average price, respectively, because of global inflation and other related issues.
He declared, “The public and authorised dealer banks are hereby advised to note and comply accordingly.”He clarified, though, that the PVS was not intended to ascertain the true costs of goods subject to government tariffs or duties.
Instead, he said, “it will allow the CBN to limit the excess outflow of limited foreign exchange through over-invoicing and other price manipulation activities.
“Additionally, in a related development, the apex bank instructed all authorised dealer banks to only use electronic means going forward for the payment of Business Travel Allowance (BTA) and Personal Travel Allowance (PTA).
This is consistent with the commitment to maintain stability and transparency in the foreign exchange market and to abstain from malpractices, according to Mahmud in a different circular.
For the avoidance of doubt, cash payments for PTA/BTA are no longer accepted.”PTA/BTA payouts will now only be made by authorised dealer banks via electronic means, such as debit or credit cards.
He declared, “The general public and authorised dealers are hereby to note and comply accordingly.”
(NAN)