The Central Bank of Nigeria has introduced a new form, the form NXP, which is to be attached to all cargoes leaving the country.
The introduction of the form which is in line with Memorandum 11 of the Foreign Exchange Manual, requires all export cargo to have an NXP number attached to it before it can be loaded and shipped out of the country. This was disclosed in a circular signed by the bank’s Director of Trade and Exchange Department, Mr. W.D. Dotring.
The introduction of the form shows that the CBN is worried about losing potential forex earnings derivable from exports and wants to shore up the process. What though could be the likely implications of the CBN’s latest move?
- Diversifying the economy may have just gotten harder: Several analysts have pointed to the over-dependence of the country’s economy on crude oil. While diversification of the economy has been preached by the current administration, this new requirement could create another wave of bureaucratic nightmares that might lead to time-wasting and logistic issues. This is likely to dissuade manufacturers from exporting and result in even more dependence on oil. Nigerian exporters have complained severally of the numerous amount of forms and steps they need to take just to export products out of the country.
- One step forward, two backwards for Ease-of-doing-business initiative: The Vice-President’s Ease of doing business Committee seemed to be getting somewhere in its mandate with recent orders and directives coming from the Presidency, but this could inadvertently drag the whole process backward by producing another delay in the export process.