CBN Threatens Importers With Sanction After Launching FX Price Verification System

The Central Bank of Nigeria (CBN) has threatened to sanction importers for infraction as regards Form M application, as it launches a foreign exchange (Forex/FX) price verification system.

In a statement released by the CBN’s Trade and Exchange Department to all banks on Thursday, authorised dealers were directed to inform foreign exchange applicants of an update to Form M request requirements.

According to the CBN, importers are now expected to submit a price verification report to be obtained from the foreign exchange price verification system portal.

The price verification report becomes one of the requirements to access forex from the official market starting from 31 August 2023.

Failure to comply with the requirement will result in sanction, according to the statement from the Trade and Exchange Department.

The statement reads: “Following the successful conduct of the pilot run and various trainings held with all the banks, the Central Bank of Nigeria hereby announces the Go- Live of the Price Verification System (PVS). 

“Consequently, with effect from August 31, 2023, all applications for Forms M shall be accompanied by a valid price verification report generated from the price verification portal. 

“For the avoidance of doubt, by this circular, the price verification report has become a mandatory trade document precedent to the completion of a Form M.” 

“All authorised dealers are, hereby, advised to bring this to the attention of their customers as any case of infraction will be appropriately sanctioned.” 

This directive comes days after the CBN Governor, Fola Shonubi, disclosed that the financial regulator is working on some foreign exchange policies. 

“Mr. President was very concerned or is very concerned about some of the goings on in the foreign exchange market and one of the things we discussed was what could be done to stabilize and improve the liquidity in the market. 

“And also, the goings on in the other markets including the parallel markets, he is concerned about its impact on the average person. 

“Unfortunately a lot of activities that we do which are purely local are still referenced to exchange rates in the parallel market,” Shonubi said on Monday.