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Nigeria’s central bank to sanction exporters without NXP number

By on October 15, 2020 0 194 Views

The Central Bank of Nigeria CBN) has said that it will sanction exporters who ship out goods without Nigerian Export Proceeds (NXP) numbers.

CBN Governor, Godwin Emefiele said at a webinar that it has been discovered that many shipping companies do not comply with the Federal Government directives that such shipments carry NXP number.

“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.

“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.”

Emefiele said that a circular outlining the procedure would be sent out to shipping lines and relevant agencies like the Nigerian Shippers’ Council, Ministry of Finance, Nigerian Customs Services, and security agencies among others.

The regulatory bank, in a move to ensure that export proceeds are repatriated back to the country by exporters, is exploring all measures to tighten the noose on illegal transactions on foreign exchange.

The NXP number, sources said enable the CBN to track dollar proceeds from exportations of good from the country and ensure such funds are returned to the country through appropriate channels.

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However, the Managing Director, MSC Nigeria Limited, a shipping company Andrew Lynch said his company receives NXP forms on all major agro commodities like cashew, cocoa and sesame, but not for commodities like charcoal and timber.

He said discovered that these items do not have NXP forms after they have already arrived at the port and once cargo gets to the port and has gotten clearance from the Nigerian Customs Services, NCS, there is pressure due to space constraints at the port to ship immediately.

He added that one of their challenges also lies in their inability to verify the authenticity of an NXP Form.
Also, the Managing Director, Grimaldi Nigeria Ltd, Ascanio Russo, said that in addition to not being able to verify the authenticity of the NXP Form, his company is unable to access CBN’s online portal.

Meanwhile, the Executive Secretary of Nigerian Shippers’ Council, NSC, Hassan Bello, said the Shipper’s Council in partnership with the CBN has carried out three sensitization meetings in Lagos and Port Harcourt to educate shipping companies and exporters on the need to implement the directive on the NXP.

In a statement by the Head, Public Relations of 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 is discontinued.

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