The Nigerian Economic Summit Group (NESG) has endorsed the Central Bank of Nigeria’s (CBN) recent decision to discontinue the Price Verification System (PVS) for foreign exchange transactions (forex).
The NESG believes this move will eliminate regulatory obstacles and enhance macroeconomic stability.
In a circular released last Wednesday, the CBN announced that starting from July 1, importers would no longer need to validate their applications for Form ‘M’ through the Price Verification Report from the PVS.
The circular was issued by Mr. W.J. Kanya, Acting Director of the Trade and Exchange Department, referenced an earlier circular from August 17, 2023, which had introduced the Price Verification System Portal. This portal was designed to ensure accurate pricing in foreign exchange transactions by preventing over-invoicing and under-invoicing.
With the new directive, the requirement for a Price Verification Report to complete a Form ‘M’ has been eliminated, streamlining the process for authorised dealer banks and the public. The NESG welcomed this change in a communique, highlighting that it would facilitate a more efficient importation process.
According to the NESG, this efficiency will benefit the manufacturing sector by providing timely access to essential inputs, thereby boosting production and enhancing the sector’s contribution to GDP. The resulting increase in industrial output is expected to positively impact other sectors, further stimulating economic activity.
The NESG also emphasised that reducing bureaucratic hurdles will make Nigerian businesses more competitive on a global scale. Lower operational costs and improved efficiency will enable businesses to offer more competitive prices, increase market share, and expand export potential. This is expected to contribute to a favourable balance of trade and strengthen Nigeria’s position in the global economy.
Furthermore, the policy change aligns with the CBN’s mandate of maintaining price stability and promoting sustainable economic growth. By lowering the cost of doing business and improving supply chain efficiency, the policy is anticipated to exert downward pressure on production costs, thereby helping to moderate inflation. Increased economic activity and investment will support higher output growth, reinforcing the stability and resilience of the Nigerian economy.
Overall, the NESG views the CBN’s decision as a positive step toward enhancing Nigeria’s economic landscape and fostering an environment conducive to growth and stability.
