*FSRCC, NBC Warn Nigerians Against Patronising Unregistered Financial Operators
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The Central Bank of Nigeria (CBN) has introduced the GoLive of the Price Verification System (PVS) for importers.
According to the apex bank, this follows the successful conduct of the pilot run and various training held with all the banks.
This is just as the Central Bank of Nigeria (CBN) led Financial Services Regulation and Coordinating Committee {FSRCC)}, in collaboration with National Broadcasting Commission {NBC}, has advised Nigerians to stop patronizing Illegal Financial Operators (IFOs), otherwise known as Ponzi schemes that spear in different forms.
Form M is a mandatory statutory document to be completed by all importers to import goods into Nigeria.
Therefore, all importers must complete and register Form ‘M’ with Authorized Dealers when placing orders, whether the transaction is valid for foreign exchange. This is currently initiated electronically on a Trade Portal provided by the Central Bank of Nigeria in conjunction with the Nigeria Customs Service
In a circular to all banks dated August 17, 2023, and signed by the Director, Trade and Exchange Department of CBN, Dr S. O. Nnaji, the CBN noted that
with effect from August 31, 2023, all applications for Forms M should be accompanied by a valid Price Verification Report generated from the Price Verification Portal.
“For the avoidance of doubt, by this circular, the Price Verification Report has become a mandatory trade document precedent to the completion of a Form M.
“All Authorised Dealers are hereby advised to bring this to the attention of their customers as any case of infraction will be appropriately sanctioned. Please ensure compliance,” the statement read in part.
Available records show that the life span of a Form M is 180 days (for general merchandise) and 365 days (for plant and machinery), after which an extension of 180 days (for general merchandise) and 365 days (for plant and machinery) can be granted on the Form M by the Authorized Dealer. Any further extension has to be approved by the Central Bank of Nigeria (CBN).
Meanwhile, in a joint statement available on CBN website, the regulators warn that their growing activities portends grave risk to the public confidence and stability of the Nigerian Financial System.
“The FSRCC and NEC in their continuing efforts to end the scourge of IFOs in Nigeria, hereby issue the following advisory to the general public:
“Refrain from dealing with unlicensed or illegal financial operators, who lure and defraud unsuspecting members of the public by offering extra ordinary returns on investments as bait.
” Verify the licensing status of such companies and schemes on the following websites before investing in them: CBN: httos://www.cbn.gov.ng ; NAICOM: https://naicom.gov.ng; PenCom: htips://www.pencom.gov.ng d. SEC: https://sec.gov.ng,” the statement read in part.
Consequently, the committee wants the Public to report any individual or entities suspected to be involved in such nefarious activities to Law enforcement agencies and call its toll-free lines.
“Member agencies will continue to engage in regular sensitization campaigns on the threats posed by the activities of Illegal Financial Operators.
“Further enquiries may be addressed to:The Director, Financial Policy and Regulation Department / Secretary, FSRCC, Central Bank of Nigeria, and/or I. The Executive Commissioner, Legal, and Enforcement, Securities and Exchange Commission,” the statement further advised.
A similar warning was issued in April 2022, yet most Nigerians continue to patronize these IFOs.
According to the committee then, the warning comes because these illegal financial operators lure and defraud unsuspecting public members by offering extraordinary returns on investments as bait.
The FSRCC was established by the CBN in April 1994 to address more effectively, through consultations and regular inter-agency meetings, issues of common concern to regulatory and supervisory bodies
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