PVS portal discontinuation’ll improve production –LCCI
The Lagos Chamber of Commerce and Industry (LCCI) has commended the Central Bank of Nigeria (CBN) for its recent decision to discontinue the Price Verification System (PVS) Portal, saying the move will streamline the importation process, allow timely access to essential inputs and foster higher production levels in the manufacturing sector.
The chamber stated that the step taken by the CBN, was a direct 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.
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. The mandatory Price Verification Report for completing Form ‘M’ added bureaucratic hurdles and operational inefficiencies that negatively impacted the business community.
Director General of the chamber, Chinyere Almona, noted that the concerted efforts of the chamber, 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 also expressed the Chamber’s delight on the exemption of Small and Medium Scale Enterprises (SMEs) from withholding tax, and the suspension of VAT and import duties on medical supplies.
“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. These 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.”
Reeling out the impacts of the discontinuation of the Price Verification Report requirement, she noted that businesses will experience reduced delays and lower operational costs.
“This will streamline the importation process, allow timely access to essential inputs and fostering higher production levels in the manufacturing sector.
“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.
“ 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, the policy is expected to exert downward pressure on production costs, thereby curbing inflation.
“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.”
The chamber commended the CBN for the strategic move and reaffirmed its commitment to continuing “our advocacy efforts to foster a business-friendly environment in Nigeria. We look 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.”
