You are a liar. Price of Gasoline in USA varies from State to State. Minimum wage also varies from one city to another.

Ramseydoyin:
90% of Nigerians are not patriotic to this country, I do tell people long time ago Nigeria economy has been on falsehood stream long over due, if one to reform economy Nigeria we have many rivers to cross. I do wonder price of noodles in ondo state is different from in kaduna while in developed countries all commodities prices are uniform.

A lot of people here don't even understand what it means. Form M is for importers. It's part of the documentation they get from the bank for importation. Now the govt wants to add another price verification levy

Anything P. V nodey work 4 9ja. :-)

Exmilitant:
Na God put am there.

God cannot be mocked. You need to be careful of what you involve God's name, if you don't want his wrath!

Let's see how it goes.

drmorphine:
Importance of this please?

Revenue generation... customer will be charged for the price of generating the report.

This CBN governor is the most useless that can be seen. .

Just less than 2 months into office. . The variance between official rate and black market is almost #300 and yet they claimed that wanted to harmonize rates. .

They knew they only wanted to increase the official rate, but wanted to deceive Nigerians with techinical jargons.

Thieves.

Buhari was even trying to consider the masses by sustaining some value for the Naira but this Emilokan man just cares about recouping his money at the expense of the masses.

IkeGod9891:
Dis is d funniest thing ever from CBN. how can a body like CBN be adopting any idea?

When you start seeing PVS charges in your Form M transactions, you will understand

So nobody in almighty CBN knows that trainings doesn't exist in English language?

Princeton92:
someone speak english please??

The introduction of the price verification system before completing "form M" can have several impacts on the economy of Nigeria.

Price Accuracy: This new system could help prevent incorrect or inflated prices for goods being imported, ensuring that prices are fair and aligned with market realities. This could lead to a more transparent and stable economic environment.

Reduced Inflation: If the prices of imported goods are accurately verified and controlled, it could help in controlling inflation, as excessive price increases can contribute to rising overall prices in the economy.

Improved Trade Balance: Accurate price verification can lead to more realistic valuations of imported goods, which might positively impact the trade balance. It could prevent under-invoicing or over-invoicing, helping to balance imports and exports.

Investor Confidence: A transparent and fair pricing system can boost investor confidence in the economy. When investors see that the government is taking steps to ensure a level playing field, it can encourage more investments.

Regulatory Compliance: The system could encourage businesses to adhere to regulations and avoid fraudulent activities related to pricing. This strengthens the overall regulatory framework of the economy.

Efficient Resource Allocation: Accurate pricing information can help businesses allocate resources more efficiently, as they have a clearer understanding of the actual costs of imported goods.

Overall, the introduction of the price verification system could contribute to a healthier, more stable, and well-regulated economic environment in Nigeria.


(Copied) from chatgpt

Barbiturate:


God cannot be mocked. You need to be careful of what you involve God's name, if you don't want his wrath!

Read your new testament. All leaders legal or illegal were allowed by God.

Government is the single biggest manipulator of FX & the major cause for the crash of the Naira.

Let's just take cars alone... the FG imports more vehicles for official purposes (not business related purchases like Dangote etc) than almost any other body.

To help, the FG should ban all government MDAs & officials from purchasing non-agric/construction related vehicles.

The president himself should not have more than 3 foreign purchased vehicles in his convey, ditto for the VP. Governors should have just 2.

All other government MDAs/persons/political appointees should purchase locally assembled vehicles or use your personal car at your own expense.

Not a bad thing to initiate but hope it will stand and be implemented

Princeton92:
someone speak english please??

Meaning demand for privet verification portal from authorised dealers. Except you want to deal with unauthorised dealers at your own peril.

ImDStar:
The illegitimate man must be ousted out.
Illegitimate person cannot birth legitimate government.
That's my own.

And who's the legitimate one. And please give a brief explanation about their legitimacy.

Says a foolish Obidafti

immortalcrown:
Is it a big deal to mention foreign exchange in the report?

See as I rush think say na the prices of Garri, Groundnut, Sugar and Fuel.

English please
In simple terms otherwise this won’t make sense to most people who read it, someone will mistaken it for subsidy back on petrol

Vixlot:
BREAKING NEWS: CBN announces Price Verification System Portal(PVS).

Good initiative!

I think the CBN has been very proactive lately under their interim Governor. Kudos to them.

Brownville007:
Let's see how this goes .But what if price changes before the goods are imported!

Kindly watch and subscribe to my channel please. I no dey proud !

From Fear to Freedom: How the World's Worst Dictators Ruled with an Iron Fist


https://www.youtube.com/watch?v=atVqXPoOucc

It's actually price of Forex not goods. Did you see Form M in the letter?

EmmaLege:
So price of things go come down abi wetin 🤷🏻‍♂️

They are just mad with new policies that won't help the poor masses ..

I was think I heard bag of rice will trump 20k again mtheew

BoldBrainz:


Under any circumstance, the CBN doesn't need to print more money. There's already too much paper naira in the economy.

Why does it need to borrow dollar if it doesn't need to print more money to stabilize the currency. Too much money doesn't mean it is in the wrong hands, it is simply in where it is supposed to be that's why the CBN was established . There are many times when the naira is in shortage for trade even the lower denomination. There is no point transacting with dollars in Nigeria because it will lead to high dollar demand and a diverging currency.
Remember not printing enough money means devaluing the currency as some notes becomes worn out if you understand economic, shortage of transaction and when the lower currencies is in obsolete, the manufacturing industries won't produce goods for that worth as an example and even local traders and manufacturer gets shortage of resources and money will generally not be in circulation.

illicit:
Who dey price us

Who wan price you kikiki

this is the break down

The Central Bank of Nigeria is set to launch its Price Verification Portal on August 31 2023.

Please read this explainer written in 2021, some elements may have been changed or updated, but the broad idea remains.

Understanding CBN’s new guidelines on import and export financing

The Central Bank of Nigeria's (CBN) new import and export financing guidelines via an eValuator system are set to effect on February 1, 2022. So, let's talk about it.

Introduction of the Policy

The Central Bank of Nigeria's new guideline on imports is based on the electronic submission of invoices called e-vouchers. This new guideline is mandatory for all imports above $10,000. These new e-Vouchers will be issued and authenticated by Authorized Dealer Banks (ADBs).

Importers of any good or service into Nigeria must register that good or service supplier into an electronic database. This database is updated annually. The importer of any good or service will then submit import papers to complete a Form M. Still electronically, the price the importer will quote will be based on a "Global Price Verification Mechanism (GPM) guided by a benchmark price. The GPM will advise a benchmark price for all goods and services, which is the actual spot price advised to the importer by the supplier.

The Benchmark Price

The new guideline revolves around this benchmark price. If the supplier wishes to import, his quoted price on the invoice presented to his bank (ADB) should be at most 2.5% of the verified global benchmark price. If the quoted price exceeds 2.5%, Form M will be queried and not processed in Form M or NXP. It is the responsibility of the importer to ensure that their supplier complies.

Let me summarize this way. If you intend to import a BMW 5 Series car from BMW of Atlanta, these are the steps under the guideline.

1. Go to BMW of Atlanta, and obtain an Invoice.
2. BMW of Atlanta will register on a dedicated electronic portal provided by CBN but operated by the CBN agent service provider. This registration will cost $350 and be valid for 12 months.
3. The CBN's service provider will issue BMW of Atlanta a digital certificate. BMW of Atlanta will sign your eInvoice with this digital certificate.
4. BMW of Atlanta will provide the authenticated eInvoice to you
5. The CBN's service provider will transmit the BMW eInvoice to CBN, specifically the Nigeria Single Window Portal Trade Monitoring System (TRMS)

If the BMW of Atlanta quoted price for your BMW 5 series is more than 2.5% of the benchmark price, then your Form M will not be processed.

This guideline also applies to exports; the critical difference for exporters is that the exporters from Nigeria are quoting a price as the supplier. They must quote within a 2.5% band as well.

Thus, if I am a Cassava chip exporter and get an order from China, I cannot quote a selling price below 2.5% of the benchmark cassava chip price as CBN advised. This is an important distinction. Now, let us talk about the exchange rate mechanism in Nigeria.

Why is Exchange Rate Important?

When you import, you are buying Forex; in effect, you are taking Forex away from Nigeria; you "weaken" the Naira. When you export, you bring Forex into Nigeria and "strengthen" the Naira.

The CBN and all Central banks always promote exports; however, not all Central Banks want a strong currency. Strong export economies such as China, Germany, Switzerland, and Japan prefer a weaker currency to ensure their exports are competitive. The CBN's goal is to have a "strong" Naira to the US Dollar by words and deeds. The CBN has defended the Naira exchange value in relation to the US Dollar to ensure it does not weaken further. The CBN is rightly wary of imported inflation.

Nigeria, however, is also an exporting nation, she exports Crude oil, Cocoa, Cashews, and many other commodities, but Nigeria's CBN also has a Capital Control policy. This means the inflow and outflow of foreign capital in and out of Nigeria is controlled and regulated. The CBN sets the Exchange rate of the Naira to the dollar, not the interplay of Demand and Supply. Thus, Nigeria has two rates, the official NAFEX rate, which exchanges $1 to about N414 and the unofficial rate at about $1/550.

The Export v Import Gambit

Many exporters from Nigeria are willing to sell their local commodities at a discount to the international commodities market because this attracts international buyers. They, however, do not remit their Forex to the official channels but rather to the unofficial market to take advantage of the higher exchange rate. So, exporters can earn more from the arbitrage in selling USD to the unofficial market.

The CBN has a standing policy that exporters must repatriate all exports within 90 days for oil and gas transactions and 180 days for non-oil exports. The CBN had in January 2021 instructed banks to prohibit Nigerian exporters that fail to repatriate Forex earnings from banking services with effect from January 31, 2021.

CBN has tried sticks of sanctions and carrots of paying N5 per deposit to encourage the repatriation of proceeds back to Nigeria, but this has not succeeded. This policy is an export-import gambit. The exporter will have to invoice at the benchmark prices, enabling them to earn more from the export side by selling at higher prices. Still, they will then remit Forex at the lower exchange rate.

The CBN objective of a "strong" Naira is thus affected by the low foreign reserves it must defend the Naira. The low reserves are a function of the non-remittance of export proceeds promptly as well as a fall in remittances generally.

Exports win, Imports lose?

This new e-Voucher guideline raises commodity prices in Nigeria. It removes the advantage of lower prices from Nigerian exports, but more remittances should flow to the CBN. Importers have a more challenging time.

However, is the 2.5% not too narrow a band? When you buy a BMW in Atlanta, three main factors drive your selling price.

1, Cost price, how much is the car worth?
2. Your profit margin, how much do you want to make?
3. Inflation expectation, what will it cost you to replace your stock?

The BMW from Atlanta is sold in United States Dollars; however, you are importing to sell in Nigeria for Naira. According to the CBN, the OTC FX Future dollar rates to Naira for delivery in May 2022 show a further weakening of the Naira to N432.32. The futures price is thus my replacement cost in 5 months. Therefore, all traders add a margin that captures this inflation expectation. The language in the CBN circular explicitly suggests that the margin is a firm 2.5%; it implies ignoring the inflation reality. Many importers will no longer open Form M, finance their imports, or change destination ports.

However, this policy has some good points; it allows the CBN to have a database of importers and import requests. Every time a new supplier registers, it's a trade forecast for the CBN. It is an early notice to the Central Bank of Nigeria that it must have forex reserves to meet that Forex demand. This will allow more long-term planning and management of the reserve position. It will also remove the fraudulent request for FOREX on non-existent trades and overall reduce slippage.

We shall revisit this policy.

Lolz


This government can never and will never know the right thing to do, why do they want to unify official rate with black market rate in the 1st place, that’s when the problem started and now, they are coming with price verification portal, what will be the essence of this when someone needs foreign currency and can only get it from mallam…

Nonsense
They should put back the official at 460 it was

The circular states that with effect from August 31, 2023, all applications for Forms M (which are used to authorize the export of goods from Nigeria) must be accompanied by a valid Price Verification Report generated from the PVS portal. A Form M is a mandatory document that must be obtained from the CBN before exporting goods from Nigeria.

The circular also states that the Price Verification Report is now a mandatory trade document precedent to the completion of a Form M. This means that it is now required for all exports from Nigeria.

Finally, the circular advises all Authorised Dealers (banks that are authorized to deal in foreign exchange) to bring this to the attention of their customers. Any case of infraction will be appropriately sanctioned.

In summary, the CBN's PVS portal is a new system that will be used to verify the prices of goods and services exported from Nigeria. With effect from August 31, 2023, all applications for Forms M must be accompanied by a valid Price Verification Report generated from the PVS portal. This is a mandatory requirement for all exports from Nigeria.

Another bottleneck in approving form M.
Foreign manufacturers have to pay $350 to register, and registration only last for 12 months.
Las las, we go transfer that amount into the selling price of goods

Ease of doing business in the mud.

Omoapena:
Lolz


This government can never and will never know the right thing to do, why do they want to unify official rate with black market rate in the 1st place, that’s when the problem started and now, they are coming with price verification portal, what will be the essence of this when someone needs foreign currency and can only get it from mallam…

Nonsense
They should put back the official at 460 it was

Bro, Buhari was subsidizing it at 465, so they have removed that. . Tinubu needs to recover his funds. You don't get it.

For those still confused, it means for everytime someone wants to acesss forex via banks, the price verification system will be the official exchange quote for the banks and the customer because what some banks do is to quote a higher price to importers/those seeking forex and then get it at a lower rate from Cbn thus creating an internal arbitrage. That's my own understanding of the post, looks like a good policy to curb sharp practices from banks.

Lols. It's amazing how many Nigerians do not understand the language of Finance.

Form M is used for visible import just ad form A is for invisible import. With form M, one can obtain Forex from CBN at official rate through his bank to pay his foreign exporter. Now, the CBN beleives that prices quoted for imported products using form M may not be correct and used as avenue to siphon FOREX from the official window. The CBN is now introducing a price verification platform to reduce/eliminate the possibility of claiming wrong FOREX through Form M.

In a nutshell, it's an attempt to curtain fraud and leakages in the nation's FOREX.

very well then. thanks to you and AI

Geovanni412:


The introduction of the price verification system before completing "form M" can have several impacts on the economy of Nigeria.

Price Accuracy: This new system could help prevent incorrect or inflated prices for goods being imported, ensuring that prices are fair and aligned with market realities. This could lead to a more transparent and stable economic environment.

Reduced Inflation: If the prices of imported goods are accurately verified and controlled, it could help in controlling inflation, as excessive price increases can contribute to rising overall prices in the economy.

Improved Trade Balance: Accurate price verification can lead to more realistic valuations of imported goods, which might positively impact the trade balance. It could prevent under-invoicing or over-invoicing, helping to balance imports and exports.

Investor Confidence: A transparent and fair pricing system can boost investor confidence in the economy. When investors see that the government is taking steps to ensure a level playing field, it can encourage more investments.

Regulatory Compliance: The system could encourage businesses to adhere to regulations and avoid fraudulent activities related to pricing. This strengthens the overall regulatory framework of the economy.

Efficient Resource Allocation: Accurate pricing information can help businesses allocate resources more efficiently, as they have a clearer understanding of the actual costs of imported goods.

Overall, the introduction of the price verification system could contribute to a healthier, more stable, and well-regulated economic environment in Nigeria.


(Copied) from chatgpt

Princeton92:
someone speak english please??

The aim is to regulate price.

It can be likened to the defunct Price Control Board during military regime