In August, the Central Bank of Nigeria (CBN) launched the foreign exchange (FX) price verification system (PVS) portal, a system it introduced to help importers in the country gain access to foreign exchange amidst the forex crisis in the country.
According to a statement from its Trade and Exchange Department, the apex bank said a price verification report which was to be generated from the portal is now mandatory for all Form M requests, which takes effect on August 31, 2023. The statement reads:
“Following the successful conduct of the pilot run and various trainings held with all the banks, the Central Bank of Nigeria hereby announces the Go-Live of the Price Verification System (PVS).
“All applications for Forms M shall be accompanied by a valid price verification report generated from the price verification portal. For the avoidance of doubt, by this circular, the price verification report has become a mandatory trade document precedent to the completion of Form M. All authorised dealers are, hereby, advised to bring this to the attention of their customers,” the statement adds.
A Form M or an e-Form M is an online mandatory documentation process introduced by the Central Bank of Nigeria (CBN), and the Nigeria Customs Service (NCS). Put in place by the Federal Government of Nigeria through the Federal Ministry of Finance (FMF), it aims to monitor goods that are imported into Nigeria, as well as enable the collection of import duties where applicable.
Read also: CBN introduces FX price verification system portal for importers
Why a Price Verification Report
In January 2022, the central bank announced the introduction of an e-evaluator and e-invoice to replace hard copy final invoices as part of the documentation required for all import and export transactions.
The regulations meant imports, and exports with unit prices that are more than 2.5% of the verified global checkmate prices would be queried and will not be allowed for successful completion of either Form M or Form NXP.
The price verification system is the build-up of the e-evaluator and e-invoice. It is also meant to help streamline and regulate financial transactions and documentation in the banking sector. The PVR which is generated through the PVS is meant to forestall overpricing and ensure price accuracy of goods imported into the country. This, on the other hand, helps to curtail inflationary tendencies and drive down unnecessary demand for forex, which has over the months caused the nation’s currency to depreciate against the dollar consistently.
Without the Price verification report, no importer of goods whether capital or general merchandise, would be allowed access to forex by the CBN and consequently to form M, which is also a pre-requisite to import goods into the country by the Nigeria Customs Service.
How to generate the price verification report
To get started, all importers are advised to register their profiles on the PVS portal and then follow the steps below to generate the PVR.
- Click on Get Started to register
- Search for your Tax Identification Number (TIN)
- Review the details generated from your TIN
- Fill in the required fields and submit
Upon successful registration, you can then follow the following steps below to generate the PVR.
- Login to the PVR portal
- Select ‘Create Form’ under Form M
- Click ‘Proceed’ on the pop-up displaying the reference number
- Fill in all compulsory fields and select ‘Save’ to proceed
- Fill in the details of the items you are importing or use the bulk upload feature
- Proceed to fill in the details in the ‘Summary Details’
- Select ‘Save and Proceed’ to validate the details submitted
- Once completed, please navigate to ‘View Forms’ to view your forms and click ‘Download XML’ for your PVR.
The report is valid for one year and must be submitted during the application for Form M. Available records show that the life span of Form M is 180 days (for general merchandise) and 365 days (for plant and machinery). An extension of 180 days (for general merchandise) and 365 days (for plant and machinery) can be granted on Form M by the Authorized Dealer if deemed necessary. Any further extension has to be approved by the Central Bank of Nigeria (CBN).
Read also: Investors on high alert as CBN prepares to clear FX backlog in “1 to 2 weeks”
The e-Form M can be obtained on the Federal Government of Nigeria Single Window for Trade portal or through the assistance of the importer’s Authorized Dealer Bank.
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