The Central Bank of Nigeria (CBN) has announced a significant adjustment to the Price Verification System (PVS), increasing the limit from 2.5% to 15%. This decision, as outlined in a circular by Dr. Hassan Mahmud, Director of the Trade and Exchange Department at the CBN, aims to address global inflation and associated challenges.

Originally introduced in 2022 to tackle over-invoicing of imports, the PVS ensures scrutiny of imported items priced more than 2.5% above the global average. It serves to regulate financial transactions and documentation within the banking sector, aiming to mitigate overpricing and ensure the accuracy of imported goods’ prices.

Mahmud stated that due to the impact of global inflation and related issues, the CBN has revised the allowable price deviation limits for exports and imports to -15% and +15% respectively, based on global average prices.

He clarified that while the PVS doesn’t determine actual item prices for government tariffs or duties, it does help the CBN restrain excessive foreign exchange outflows due to over-invoicing and price manipulation.

In a related directive, the CBN instructed all authorized dealer banks to exclusively process payments for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) through electronic channels. Mahmud emphasized this move aligns with the commitment to enhance transparency and stability in the foreign exchange market, while combating malpractices.

Cash payments for PTA/BTA are now prohibited, with authorized dealer banks mandated to facilitate payouts solely through electronic channels, including debit or credit cards. This directive applies to both authorized dealers and the general public, who are expected to comply accordingly.