International Trade: CBN’s Export Proceed Number causing huge setback for exporters

New CBN policy directing exporters to present the NXP number before exporting is currently causing a setback for international trade.

By Adeyemi Adebayo

Exporters in Nigeria have expressed concerns over the directive by the Central Bank of Nigeria (CBN) for all exporters to present the Nigeria Export Proceed (NXP) number before exporting their goods, as they claim it has caused huge setback for their businesses.

In the wake of this development, exporters of perishable items are already groaning because of the complicated process of obtaining the NXP number, as their goods which lie fallow at the airport may lose quality, while they seek to get the NXP number.

This has prompted many exporters to call on the CBN Governor, Godwin Emefiele, to suspend the directive, which an exporter described as a major setback to non-oil exports.

What they are saying

President of Cocoa Exporters Association of Nigeria, Pius Ayodele, had earlier said that:

• “About 100,000 tons of cocoa beans are trapped at the ports and another 100,000 tonnes of a variety of agricultural commodities are in warehouses around the country. It now takes an average of 40 days, instead of seven days, to get approvals to clear a container for shipping.”

Commenting on the development, an importer and Secretary-General, National Cashew Association of Nigeria, Sotonye Anga, noted that agricultural goods were about to perish at the terminal, while they had waited endlessly for NXP number.

• “Exporters are having issues with the NXP validation. The directive came in suddenly, introducing several agencies to validate the export process. First, you have the authorized dealer bank; the pre-inspection agency; the Nigeria Customs Service (NCS) and the Central Bank. All these have made the process very cumbersome, it is creating queues. Several containers are stranded now in the port terminals. The worst-case applies to perishable commodities. When you subject them to this kind of procedure, you will have some problems with their integrity. If cargoes remain in the containers, their quality deteriorates.”

While urging that the programme be suspended, Anga said:

• “I understand that the CBN Governor means well for the economy. But there is no appropriate infrastructure to handle the procedure. All these would bring confusion, corruption, frustration and a whole lot of issues. You don’t take people by surprise. If you ask me, I will tell you this is not working. Right now, the frustration the policy is bringing to agriculture commodity export is too much, the government should have carried the stakeholders along, sensitized the exporters and created the right infrastructure.”

What you should know

• Nairametrics reported in October that the CBN moved to sanction exporters who ship out goods without Nigerian Export Proceed (NXP) numbers. The CBN Governor, Godwin Emefiele, made the disclosure during a virtual meeting with representatives of some shipping lines, noting that it has been discovered that many shipping companies do not comply with the Federal Government’s directives that such shipments carry NXP number.
• Thus, the CBN had in October threatened to sanction exporters who ship out goods without NXP numbers.
• The documentation process involves NXP numbers, Form NXP, which is a mandatory document to be completed by all exporters through authorized dealer bank for shipment of goods outside the country.