The Central Bank of Nigeria (CBN) has announced a significant increase in the Price Verification System (PVS) limit from 2.5% to 15%. This decision comes as the CBN seeks to address global inflation and related challenges.
The PVS, first introduced in 2022, was designed to combat over-invoicing of imports by ensuring that prices of imported items did not exceed 2.5% above global average prices. However, in response to global inflation, the CBN has adjusted the allowable limit of price deviation for exports and imports to -15% and +15% of global average prices, respectively.
Dr. Hassan Mahmud, Director of the Trade and Exchange Department at the CBN, emphasized that this adjustment aims to regulate financial transactions and documentation in the banking sector, reduce over-pricing, and ensure the accuracy of imported goods’ prices.
It is important to note that the PVS does not determine the actual price of items for government tariffs or duties, but rather seeks to prevent excessive outflow of foreign exchange through over-invoicing and price manipulation activities.
Authorized dealer banks and the general public have been advised to take note of these changes and comply accordingly.
