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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

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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  

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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.

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.

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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Business

Federal Government declares Thursday October 29 public holiday, to mark Eidl-Mawlid

Federal Government has declared Thursday, October 29, 2020 as a public holiday to mark the Eidul-Mawlid.

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The Federal Government has declared Thursday, October 29, 2020 as a public holiday to mark the Eidul-Mawlid.

This disclosure was made by the honourable Minister of Interior, Rauf Aregbesola.

Ogbeni Rauf Aregbesola congratulated muslim faithfuls both at home and abroad for the opportunity to observe this year’s celebration. He further enjoined them to show love, patience and perseverance.

In the light of the aforementioned facts, the minister urged Muslims to detest or shun lawlessness, looting and daylight robbery which undermine National security and safety.

Ogbeni Aregbesola, who described the youths as the hope and future of the nation, advised them to deepen democracy and not dampen it.

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For him, it is with more democracy that we can overcome our challenges, noting that the challenges of nationhood that we face are surmountable if we work through the democratic process.

What you should know:

Eid Mawlid is an annual celebration for Muslims meant to marked the birthday of the Prophet Mohammed.

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Just-in: President Buhari reappoints Yakubu as INEC Chairman for second term

President Muhammadu Buhari has reappointed Professor Mahmood Yakubu as Chairman of the Independent National Electoral Commission (INEC).

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INEC to introduce election results viewing portal, INEC headquarters gutted by fire

President Muhammadu Buhari has reappointed Professor Mahmood Yakubu as Chairman of the Independent National Electoral Commission (INEC) for another five-year term.

This disclosure was made by the Special Adviser to the President on Media and Publicity, Femi Adesina, in a statement titled, ‘President Buhari nominates Prof Yakubu as INEC chairman for a second term in office’.

The statement read, “President Muhammadu Buhari has presented the Chairman of the Independent National Electoral Commission, Prof Mahmood Yakubu, for a second term in office.’

Details later…

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#EndSARS protest: Hoodlums loot 110 tractors in Yola

Hoodlums looted the North East Commodity Association (NECAS) Warehouse In Yola state.

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Due to the ongoing demonstrations against police brutality tagged “EndSARS” protest, hoodlums have stolen at least 110 tractors and other farm implements from the North East Commodity Association (NECAS) Warehouse In Yola.

Confirming this development to TheVanguard, was the chairman of NECAS, Alhaji Sadiq Umar-Daware, who also revealed that the hoodlums also broke into the main warehouses of the Rice Farmers Association and Maize Farmers Association of Nigeria, carting away valuables which include farm inputs and fertilisers.

What they are saying

Commenting on the latest development, Mr. Umar-Daware, said: “They did not only took tonnes of produce, but they also made away with the farm inputs for the dry season farming and the offices of Rice Farmers Association, Maize Farmers Association of Nigeria (MFAN) and the NECAS were also looted and vandalised.

Commenting further, he said: “What they took away include tonnes of rice, beans, maize, sorghum and millets, and computers, tables, chairs, office equipment, water dispensers and cash,’’ he said.

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Mr. Umar noted that complaints have been forwarded to security agencies, although the organization is still awaiting a formal response. He, however, urged people in Adamawa and its environs to be on the lookout for anybody in possession of the tractors, and report to NECAS, RIFAN and MFAN officials for recovery and necessary action.

What you should know

NECAS is involved in agriculture-related services and human capacity development across the North-East region States of Adamawa, Bauchi, Borno, Gombe, Taraba, and Yobe.

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Since its establishment in 2018, the association has expanded its scope of activities, especially through the Federal Government, CBN’s Anchor Borrowers’ Programme (ABP), mechanisation drive, and partnerships with development agencies.

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