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According to a circular by Dr Hassan Mahmud, Director, Trade
and Exchange Department of the CBN, this is in a bid to check global inflation
and other challenges.
The News Agency of Nigeria (NAN) reports that the PVS was
initially introduced in 2022 to curb the over-invoicing of imports.
It was mandated to ensure that prices of imported items that
were above 2.5 per cent above the global average were queried.
The PVS is meant to streamline and regulate financial
transactions and documentation in the banking sector to reduce overpricing and
ensure the price accuracy of imported goods.
According to Mahmud, due to global inflation and other
related challenges, the CBN has reviewed the allowable limit of price deviation
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 to 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. NAN
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