CBN: Prices of import items that are 15% above global average will be queried

The Central Bank of Nigeria (CBN) has reviewed the allowable limit of price deviation for exports and imports.

This was disclosed in a statement dated February 14, 2024 and signed by Hassan Mahmud,  CBN’s director of trade and exchange department.

In the statement, CBN said it had previously warned that it would query declared prices of import items that are more than 2.5 percent above the global average prices of the referenced items.

However, CBN said due to global inflation and other related challenges, it has increased the allowable limit to 15 percent.

“Following the implementation of the Price Verification System (PVS) to curb over-invoicing of imports and under-invoicing of exports, the CBN in a circular referenced TED/FEM/FPO/PUB/O1/001 stated that declared prices of import items that are more than 2.5 percent above the global average prices of the referenced item will be queried,” the statement reads.

“However, due to global inflation and other related challenges, the CBN has reviewed the allowable limit of price deviation for exports and imports to -15% and +15% of the global average prices, respectively.

“Authorized Dealer Banks and the general public are hereby advised to note and comply accordingly.

“For further clarification, the PVS is not meant to determine the actual prices of items for tariffs or duty charged by government but rather to enable the CBN curtail the excess outflow of the limited foreign exchange through over-invoicing and other price manipulation activities.”

On August 17, 2023, CBN introduced a foreign exchange (FX) price verification system (PVS) portal to enable importers to access forex.

The financial regulator said a price verification report from the portal is now mandatory for all Form M requests, effective from August 31, 2023.

The Form ‘M’ is a declaration of intention to import physical goods into Nigeria.