The Central Bank of Nigeria (CBN) has announced a significant increase in the Price Verification System (PVS) from 2.5 per cent to 15 per cent. Dr. Hassan Mahmud, Director of the Trade and Exchange Department at the CBN, revealed this in a circular, citing the adjustment as a measure to address global inflation and related challenges.
Initially introduced in 2022 to tackle over-invoicing of imports, the PVS was designed to query prices of imported items exceeding 2.5 per cent above the global average. Its purpose is to regulate financial transactions and documentation in the banking sector, aiming to mitigate overpricing and ensure the accuracy of prices for imported goods.
In light of global inflationary pressures, Mahmud noted that the CBN has revised the permissible limit of price deviation for exports and imports to -15 per cent and +15 per cent of global average prices, respectively. He emphasized that authorized dealer banks and the public should adhere to these adjustments.
However, Mahmud clarified that the PVS does not determine actual prices for tariff or government-imposed duties. Instead, it empowers the CBN to curb excessive outflows of foreign exchange resulting from over-invoicing and other price manipulation practices.
In a related development, the CBN also mandated all authorized dealer banks to exclusively process payments for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) through electronic channels. This directive, outlined in a separate circular, aligns with the CBN’s commitment to ensuring transparency and stability in the foreign exchange market while preventing malpractices.