The Central Bank of Nigeria (CBN), has moved to sanction exporters who ship out goods without Nigerian Export Proceed (NXP) numbers.
While making the disclosure during a virtual meeting with representatives of some shipping lines, the CBN Governor, Godwin Emefiele, noted that it has been discovered that many shipping companies do not comply with the Federal Government’s directives that such shipments carry NXP number.
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The Form NXP is a mandatory document to be completed by all exporters through authorized dealer bank for shipment of goods outside Nigeria irrespective of the value and whether or not payment is involved. Any customer willing to engage in export business is required to register with the Nigeria Export Promotion Council.
The Executive Secretary of Nigerian Shippers’ Council (NSC), Hassan Bello, on his part, said the Shipper’s Council in partnership with the CBN has carried out 3 sensitization meetings in Lagos and Port Harcourt to educate shipping companies and exporters on the need to implement the directive on the NXP.
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In a statement by the Head, Public Relations of Nigeria Shippers Council, Rakiya Zubairu, Bello pointed out that the NSC would work with other agencies of government to ensure full compliance so that exports without the NXP are discontinued.
The CBN governor said that cargoes will be turned back if exporters do not comply with the auto system that has been put in place.
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Emefiele stated, “We are going to set up an auto system, where if someone wants to send cargo, copies of the NXP form will be sent directly to you. So, that if you don’t have it online on your system where the NXP has been registered, you turn back that cargo.
He further said; “You cannot accept any number and use it as a basis for shipping. We are not going to allow that. That is not acceptable. If you don’t see NXP Forms, that cargo should be turned back.”
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This is seen as part of the measure being put in place by the apex bank to ensure that exporters fully declare and remit their export proceeds to the banks.
Nairametrics had reported in August, the CBN’s directive to all banks in the country to submit the names, addresses and Bank Verification Numbers (BVN) of exporters that have defaulted in repatriating their exports proceeds for further action. This will help government better manage its foreign exchange resources in the face of dollar scarcity.
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CBN governor should keep his mouth close if there is a good system of government that should not be a problem. Because government agency that mount border should be held responsible ( The Nigerian Custom). The CBN governor should go after the custom, not the shipping companies since the government has an agent that takes care of the border.
As usual the symptoms are addressed rather than the root cause. Before goods to be exported can get into the ports a valid NXP would have been filled, NESS and Terminal Handling charges paid and then the goods have to pass the gauntlet of getting through various “check points” to gain access to the port for shipment. By the time this is achieved a process that used to take 24 hours can take anything up to a month or more. As a result exporters shipping against set price contracts under time bound letters of credit are unable to meet the deadlines and thus fall foul due to late shipment.The result of this is the buyers can re negotiate the purchase price usually at a lower rate and this leads to shortfalls in the amount repatriated.Unfortunately the CBN cannot address the lapses in port logistics so announcing that the CBN will penalise exporters will not solve the problem. The shipping companies also short ship i.e do not ship all the goods presented for shipment so for example if an exporter is to ship 10 fcls on a particular vessel a lot of times only 3 or 4 fcls may be shipped with the balance being shipped at the pleasure of the shipping company.This is what the Nigerian Shippers Council should address.