CBN Suspends Controversial Price Verification System Just Months After Rollout

The Central Bank of Nigeria (CBN) has announced the suspension of its Price Verification System (PVS) merely 10 months after its introduction. This unexpected move has raised eyebrows across the financial sector and among import-dependent businesses.

Launched in August 2023, the PVS was designed to enhance transparency and prevent over-invoicing in Nigeria’s import-export transactions. Under this system, importers were required to obtain a price verification report from the CBN, certifying that the declared prices of their goods were consistent with international benchmarks.

The suspension comes after months of mounting criticism from the business community, who argued that the PVS created unnecessary bureaucratic hurdles and delayed the importation process. Many importers reported increased costs and extended clearance times at the ports, leading to disruptions in supply chains and rising prices for consumers.

CBN Governor, Godwin Emefiele, in a statement released on Wednesday, cited the need for a review of the system’s effectiveness and its impact on trade as the primary reasons for the suspension. “The Central Bank remains committed to ensuring the integrity of our financial systems while fostering an environment conducive to business growth. We will reassess the PVS to address the concerns raised by stakeholders,” Emefiele said.

Industry experts have expressed mixed reactions to the CBN’s decision. While some see it as a necessary step to alleviate the pressures on businesses, others worry about the potential for increased malpractice in the absence of stringent verification mechanisms. 

The Manufacturers Association of Nigeria (MAN) welcomed the suspension, highlighting that the PVS, in its current form, was counterproductive. “We believe this pause will provide an opportunity for the CBN to re-engage with stakeholders and develop a more effective solution,” MAN President, Mansur Ahmed, commented.

As the CBN undertakes its review, the business community remains cautiously optimistic that a more streamlined and supportive system will emerge, one that balances regulatory oversight with the practicalities of conducting international trade.