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Business

CBN knocks airline and shipping firms over non-compliance with form NXP

The CBN has threatened severe sanctions for non-compliance with the processing of Form NXP.

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The Central Bank of Nigeria (CBN) has announced its displeasure over the lackadaisical attitude of airline and shipping companies toward the provisions of the circular referenced TED/FEM/FPC/GEN/01/009 dated June 06, 2017.

Which circular, mandated the bills of lading/airway bills emanating from the aforementioned sectors in cognizance of exports from Nigeria to carry the form NXP number with respect for the underlying cargoes.

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The disclosure is contained in a recent circular sent by the CBN, dated October 06, 2020, signed by the Director of Trade and Exchange Department, Dr O.S NNAJI and referenced TED/FEM/FPC/GEM/001/008.

In the recent disclosure, the CBN revealed that despite earlier provisions for electronic processing of form NXP on the Trade Monitoring System (TRMS) and entreaties to the concerned firms to do the needful, the compliance to the order has been appalling and grossly abused.

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Recall that in an earlier circular referenced TED/FEM/FPC/GEM/01/003 dated October 28, 2019, CBN had made the processing of the form NXP quicker, more efficient and improved through introduction of a compulsory electronic processing for the form accessible at the TRMS site.

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In lieu with the above-mentioned provisions and efforts and the high rate of non-compliance recorded so far, CBN has however, announced stricter measures and fines as a way of enforcing compliance.

READ: CBN automates trading system, introduces electronic form to facilitate exports 

In the latest CBN circular, the options of severe sanctions for non-compliance is not ruled out. A part of the latest circular read thus;

Consequently, all shipment of export cargoes from Nigeria shall with effect from the date of this circular be in accordance with the aforementioned procedures.

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“For the avoidance of doubt, it shall be a breach of extant regulations for any shipping company or airline company to take on-board any cargo for which form NXP is not duly completed and approved on the TRMS platform, failing which severe sanctions shall be meted out for such breach, such sanctions shall include refund of the forex value of goods illegally exported as well as Post-No-Debit on all bank accounts Nationwide.

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Chidi Emenike is a graduate of economics, a Young African Leadership Initiative Fellow and an Investment Foundations certificate holder. He worked as a graduate Teaching Assistant in the Federal College of Education Kano and is also a trained National Peer Group Educator on Financial Inclusion

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