The Price Verification System (PVS) will now be reviewed higher, from 2.5 percent to 15 percent, according to the Central Bank of Nigeria (CBN).
Dr. Hassan Mahmud, Director of the CBN’s Trade and Exchange Department, stated in a circular that this is being done in an effort to control global inflation and other issues.
It was required to make sure that import costs over 2.5 percent of the average price throughout the globe were questioned.
The purpose of the PVS is to guarantee price correctness of imported products, minimize overpricing, and expedite and control financial operations and paperwork in the banking industry.
Mahmud claims that the Central Bank of Nigeria (CBN) has examined the permitted price variation limit for exports and imports to -15 per cent and +15 per cent of global average prices respectively.
“Authorised dealer banks and the general public are hereby advised to note and comply accordingly,” he said.
He, however, said that the PVS was not meant to determine the actual prices of items for tariffs or duty charged by the government.
“It will, rather, enable the CBN curtail the excess outflow of limited foreign exchange through over-invoicing and other price manipulation activities,” he said.
In a related development, the apex bank also directed all authorised dealer banks to, henceforth, effect payment of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) through electronic channels only.
According to Mahmud, in a separate circular, this is in line with the commitment to ensure transparency and stability in the foreign exchange market and avoid malpractices.
“For the avoidance of doubt, payment of PTA/BTA by cash is no longer permitted.
“Authorised dealer banks shall henceforth effect payout of PTA/BTA through electronic channels only, including debit or credit cards.
“Authorised dealers and the general public are hereby to note and comply accordingly,” he said.
