The Central Bank of Nigeria (CBN) will be using Product Price Verification Mechanism model to check over-invoicing in the foreign exchange market.
In a circular to all authorized dealers, CBN Director, Trade and Exchange Department, O.S. Nnaji, said the plan was part of the apex bank’s moves to ensure prudent use of foreign exchange resources and eliminate incidences of over-invoicing. The new policy will also check transfer pricing, double handling charges and avoidable costs that are ultimately passed to the average Nigerian consumers.
He directed authorized dealers to desist from opening of Forms M whose payment are routed through a buying company/agent or any other third-parties.
“Accordingly, all authorize dealers are hereby requested to only open Forms M for Letters of Credit, Bills for Collection and other forms of payment in f favor of the ultimate supplier of the product or service. The directive is with immediate effect”. Additionally, in line with best practices around the world, the CBN will be immediately introducing a Product Price Verification Mechanism to forestall over-invoicing and or mis-pricing of goods and services imported into the country.
“All authorized dealers shall use this mechanism to verify quoted goods in favor of the ultimate supplier of the product os service. This directive is with immediate effect. All authorized dealers shall use this mechanism to verify quoted prices before Forms M are approved,” he added.
 will be using Product Price Verification Mechanism model to check over-invoicing in the foreign exchange){kind=link}