The Lagos Chamber of Commerce and Industry has applauded the Central Bank of Nigeria over its recent decision to discontinue the Price Verification System Portal.
The LCCI’s commendation was contained in a statement signed by its Director General, Dr. Chinyere Almona, on Tuesday.
The Chamber described the removal, which took effect from July 1, 2024, as a commendable step directly responding to the persistent advocacy efforts of LCCI and other stakeholders in the organised private sector, aiming to create a more conducive business environment in Nigeria.
Almona said by discontinuing the PVS, the decision would impact positively on the Nigerian economy by reducing delays and lower operational costs as well as streamlining the importation process by “allowing timely access to essential inputs and fostering higher production levels in the manufacturing sector”.
She added: “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 LCCI commended the CBN for what it described as a strategic move and reaffirmed its commitment to continuing its advocacy efforts to foster a business-friendly environment in Nigeria.
The Chamber stated that it looked 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.
The Chamber indicated that it was also delighted with the similar stance on exempting Small and Medium Scale Enterprises from withholding tax, and the suspension of VAT and import duties on medical supplies.
Almona stressed: “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 organised private sector.”
The Eagle Online reports that LCCI, representing the interests of the organised private sector, has continuously highlighted financial policies challenges to the CBN and the government, noticing that its concerted efforts, including engaging in dialogue with key stakeholders and presenting data-driven evidence on the adverse effects of the PVS, have culminated in the present favourable outcome.
The Chamber restated that the high level of responsiveness of the present government to its advocacy on several issues affecting the private sector is indeed commendable.
Recall that the CBN introduced the PVS 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 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.