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CBN to sanction exporters who default on export proceed number

CBN to sanction exporters who ship out goods without Nigerian Export Proceeds (NXP) numbers.

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CBN to restrict foreign exchange on more food imports

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.

READ: CBN claims no immunity for Emefiele as it fires back at NESG

READ: CBN Commences distribution of grants and inputs worth over N700 million to cocoa Farmers

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

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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.

READ: Federal Government urged to scrap 12.5% new vessel tariff  

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.

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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.

READ: Nigeria’s external reserves up by 7% in 21 days, currency speculators to lose over N10 billion 

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

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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.

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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.

READ: Nigeria’s first dry inland port to be commissioned on Thursday

READ: Covid-19: CBN wants to fund research for Nigerian Made vaccines

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

2 Comments

2 Comments

  1. dada kayode

    October 15, 2020 at 4:02 pm

    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.

  2. Taiwo Ajose

    October 15, 2020 at 10:11 pm

    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.

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Presidency reacts to claims of offering N100 billion to Miyetti Allah

The Presidency has dismissed reports in the media that it offered the sum of N100 billion to the Miyetti Allah.

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The Presidency has debunked claims making rounds in the media that the Federal Government offered the sum of N100 billion to the Miyetti Allah Cattle Breeders Association of Nigeria (MACBAN).

The reaction is coming against the backdrop of the media war going on between the Presidency and the Ondo State Government over the quit order on Miyetti Allah.

The denial was made by the Senior Special Assistant to the President, Garba Shehu while appearing on a Television Programme on Channels Television, who said no such amount was given to appease the association over the reported killing by some herdsmen.

What Garba Shehu is saying

Garba Shehu, when asked if the Federal Government offered N100 billion to the association, said, “That is an absolute falsehood. In all of those meetings, I have confirmed that in any of those meetings nothing like money was discussed. All of the issues were about the involvement of the leadership of this group in getting them to prevail upon their erring members and they are many. How do they assist the administration to recover weapons that are widely owned by these elements?’’

According to Shehu, the existence of some miscreants in a group does not entirely mean the entire members of the association are criminals.

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He noted that Miyetti Allah is a cultural group just like the Afenifere associated with the Yorubas and the Ohaneze Ndigbo of the southeast.

He said, “The Miyetti Allah group is like Ohanaeze Ndigbo or the Afenifere. It’s just a cultural group. There are criminals with the Yoruba race and you cannot say because there are Yoruba criminals, then Afenifere is a band of criminals.’’

What you should know

  • It can be recalled that the crisis between the Fulani herdsmen and some parts of the country came to the fore once again following the 7-day quit notice by Ondo State Governor, Rotimi Akeredolu, for herdsmen to vacate forest reserve area to curb the spate of kidnappings in the state allegedly committed by criminals hiding in the forest.
  • However, in their reaction, the Presidency cautioned the Governor against the action saying that the herders cannot be pushed out of the reserve for any reason. They said the governor does not have any constitutional powers to ask anybody to leave the state.
  • The Presidency’s reaction has drawn widespread criticisms from some lawyers and social-cultural groups like the Afenifere, Coalition of Oduduwa Elders, Southern and Middle Belt Leaders Forum, who have expressed support for the Ondo State Governor.

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Access Bank rejects Appeal Court’s suspension of injunction against Seplat, approaches Supreme Court

Access Bank has expressed its displeasure over the ruling by the Court of Appeal which lifted the Mareva injunction against Seplat Petroleum.

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Access Bank Plc has filed a Notice of Appeal at the Supreme Court, objecting to the suspension of the interim Mareva injunction on the assets of Seplat Petroleum Development Company, by the Appeal Court.

Nairametrics had earlier reported that the Court of Appeal had suspended the Mareva injunction, and subsequently ordered the opening of Seplat’s corporate offices.

READ: NNPC to pay BCE $22.6 million over failed contract 

Nairametrics reported that Access Bank Plc had obtained the Mareva injunction through an Ex-Parte order dated November 13, 2020 to seal offices and freeze the accounts of Seplat, over the indebtedness of Cardinal Drilling Services, a company which Access Bank believes is partly owned by Seplat’s boss, Mr ABC Orjiakor.

After some months of being under lock and keys, respite came the way of Seplat Petroleum on January 22, 2021 when Hon. Justice Ikyegh of the Appeal Court lifted the interim order on Seplat Petroleum assets, pending the determination of the appeal filed by Seplat.

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READ: Innoson boss reacts to arrest warrant, says order is an abuse of process taken so far

Access Bank’s reaction to the ruling

  • Expressing dissatisfaction over the ruling by the appeal court, Access Bank, through its Solicitors, Kunle Ogunba and Associates maintained that the learned justices of the court erred in law through the suspension of the interlocutory orders made by the trial judge at the Federal High Court. The solicitors regarded the outcome as an abuse of court process filed to interfere with the due administration of justice.
  • The bank in an affidavit maintained that “by discharging the said interlocutory orders, the Lower Court had unwittingly (via a motion) determined the main Appeal which seeks to also discharge the interlocutory orders made by the trial court.”
  • The bank is praying that the Supreme Court reinstate the interlocutory orders made by the Trial Court on December 24, 2020, thereby overriding the judgement of the Appeal court en route.
  • In the same vein, the Bank is also seeking a court order restraining the defendants, that is Seplat, Cardinal Drilling Services Ltd, Mr. Orjiako, Ambrose Bryant, Kalu Nwosu and/or any other person acting through them from taking further steps towards enforcing, executing or giving any effect to the ruling/order of the Court of Appeal pending the hearing and final determination of the appeal it has filed at the Supreme Court.

READ: Access Bank unveils SWIFTPAY, digital payment platform for SMEs

Flashback:

  • Recall that Nairametrics reported some months ago that Access Bank obtained an Ex-Parte Order dated November 13th, 2020, to seal the assets of Seplat over debt owed by Cardinal Drilling Services Limited.
  • The bank also obtained a Mareva injunction freezing the accounts of Seplat in Nigeria and abroad.
  • Seplat had appealed the December 24, 2020 decision of the Federal High Court granting injunctions that, among others, resulted in the sealing of its corporate offices in Lagos.
  • The Federal High Court had earlier turned down an application by Seplat to access its accounts and offices which were earlier shut down by a Mareva injunction obtained by Access Bank against it.
  • Access Bank is understood to be grappling with a string of bad loans issued under the defunct Diamond Bank and is now stepping up efforts to go after some of the debtors by obtaining several court orders to seize properties.

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Digital transformations and AfCFTA as critical imperatives for the rebound of African economies

Digital transformations as well as AfCFTA are considered necessary for the fast recovery of the African economies.

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Leveraging technology to drive government agenda is a must to keep up with changing times - Tolu Ogunlesi, SA to the President on New Media, tech

Technological transformations through digitization as well as the African Continental Free Trade Agreement (AfCFTA) are considered as quite critical in supporting the fast recovery of the African economies.

This assertion is contained in the Foresight Africa 2021 report published by African Growth Initiatives of the Brookings Institution, a non-profit organization devoted to independent research and policy solutions.

According to the report:

  • ”Digital transformation is arguably Africa’s biggest opportunity arising from the crisis.
  • “During the pandemic, the continent has accelerated its adoption of ICTs: lockdown conditions have pushed many sectors to raise their online presence and expand their range of digital services, with developments that would ordinarily take years compressed into several months.
  • “Significant opportunities remain for digital acceleration in key sectors, particularly government, education, retail trade, and finance.
  • The African Continental Free Trade Area (AfCFTA), which also holds promise for accelerating the region’s economies through economic integration and a shift in focus toward high-productivity industrial activities commenced trading on January 1, 2021.
  • “With the increased ease of intra-African trade, African businesses will be empowered to transform continent-wide needs into opportunities for entrepreneurship.”

What you should know

  • From the hard lessons of the COVID-19, African leaders should prioritize scaling up investments in the physical and technological infrastructures needed as impetus for radical digital transformations.
  • The workforce should be appropriately equipped with the requisite trainings to acquire relevant basic and advanced digital skills that would add values in their businesses, from mobile transactions to graphic design and coding, etc.
  • Leaders should also encourage digital practices on the small-scale in order to encourage widespread usage of digital tools, as in countries like Kenya and Rwanda that have lowered their transaction charges in digital payments towards boosting adoption.
  • Leaders should focus on policies and decisions that would have greater and long-lasting impacts, especially around technological adoption and effective implementation of the AfCFTA.

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