Central Bank of Nigeria (CBN) said it has taken steps to ensure prices of imported goods with official forex allocations are not overpriced.

CBN said it is doing this with immediate effect through the ‘Product Price Verification Mechanism’.

In a circular released on Monday, and signed by Mr. O. S. Nnaji, Director of Trade and Exchange department, the apex bank said, “In line with best practices around the world, CBN will be immediately introducing a Product Price Verification Mechanism to forestall over-pricing and or mispricing of goods and services imported into the country.”

It said, “All Authorized dealers shall use this mechanism to verify quoted prices before Forms M are approved.”

The circular all indicated that “as part of continued efforts by CBN to ensure prudent use of foreign exchange resources and eliminate incidences of over invoicing, transfer pricing, double handling charges, and avoidable costs, that are ultimately passed to the average Nigerian consumers, authorized dealers are hereby directed to desist from opening of Forms M whose payment are routed through a buying company/agent or any other third parties.”

“All authorised dealers are hereby requested to only open forms M for Letters of Credit, Bills for collection and other forms of payment in favour of the ultimate supplier of the product or service,” it said.

Daily Trust