The Lagos Chamber of Commerce and Industry (LCCI) has applauded the Central Bank of Nigeria (CBN) for its recent decision to discontinue the Price Verification System (PVS) Portal, effective July 1, 2024.
LCCI in a statement said government new posture directly responds to the persistent advocacy efforts of the Chamber and other stakeholders in the organized private sector, aiming to create a more conducive business environment in Nigeria.
Recall the CBN introduced the Price Verification System Portal to ensure accurate pricing of goods and services for foreign exchange transactions aimed to prevent over-invoicing and under-invoicing. While it intended to foster fair pricing in Nigeria’s import and export activities, the PVS Portal had inadvertently become an impediment to business operations, particularly for importers.
According to the LCCI Director General, Dr Chinyere Almona the mandatory Price Verification Report for completing Form ‘M’ added bureaucratic hurdles and operational inefficiencies that negatively impacted the business community.
She said: “The LCCI, representing the interests of the organized private sector, has continuously highlighted these challenges to the CBN and the government. Our concerted efforts, including engaging in dialogue with key stakeholders and presenting data-driven evidence on the adverse effects of the PVS, have culminated in this favourable outcome. The high level of responsiveness of the present government to our advocacy on several issues affecting the private sector is indeed commendable”, she stated.
Also, she stated that the Chamber is also delighted with the similar stance on exempting Small and Medium Scale Enterprises (SMEs) from withholding tax, and the suspension of VAT and import duties on medical supplies. According to her these non-cash interventions, which the Chamber has recently been recommending to the government, have the capacity to gradually and consistently ease the inflationary pressures recorded in the economy in the past two years.
Commending the new thinking of government she stressed that the p policy interventions by the government will enhance the ease of business in Nigeria. The LCCI appreciates the government’s responsiveness and commitment to addressing the concerns of the organized private sector she added.
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On the impact of the discontinuation, the LCCI boss said it will have several positive impacts on the Nigerian economy such thatbusinesses will experience reduced delays and lower operational costs. In addition to streamling the importation process and allowing timely access to essential inputs and fostering higher production levels in the manufacturing sector.
In her words: “ The reduction in bureaucratic bottlenecks will make Nigerian businesses more competitive on a global scale. Lower operational costs and improved efficiency will enable businesses to offer more competitive prices, increase market share, and expand their export potential.
Dr Almona pointed out that the policy change aligns with the CBN’s mandate of maintaining price stability and promoting sustainable economic growth. By reducing the cost of doing business and enhancing supply chain efficiency.
According to her with importers having more certainty about the pricing of the goods, they can plan better and reduce incidences of losses due to unexpected higher prices from such automated price verification systems.
She further commended the CBN for this strategic move and reaffirms LCCI’s commitment to continuing her advocacy efforts to foster a business-friendly environment in Nigeria.
Almona said the Chamber looks forward to further collaborations with the CBN and the government to ensure that policies are in place to support the growth and development of the private sector, ultimately driving Nigeria’s economic prosperity.