NIGERIA: Central Bank Threatens Shippers with Penalties over NXP Non-Compliance

The Central Bank of Nigeria (CBN) released a circular on 6 October 2020 notifying international shipping and airfreight companies that they will be sanctioned for not complying with its directive requiring all exported goods leaving the country to carry Nigerian Export Proceeds (NXP) form numbers on their bills of lading or airway bills, as specified in the bank’s circular TED/FEM/FPC/GEN/01/009, dated June 06, 2017. The central bank also reiterated that the electronic processing of NXP forms via the www.tradesystem.gov.ng portal as is required under its TED/FEM/FPC/GEN/01/003 circular of 28 October 2019.

The new circular makes clear that action will be taken for non-compliance, stating: “It shall be a breach of extant regulations for any shipping company or airline company to take on-board any cargo for which form NXP is not duly completed and approved on the Trade Monitoring System (TRMS) platform, failing which severe sanctions shall be meted out for such breach. Such sanctions shall include refund of the forex value of goods illegally exported as well as Post-No-Debit on all bank accounts nationwide.” Speaking at a virtual meeting with industry stakeholders arranged to discuss the matter a few days after the circular was released, Godwin Emefiele, the CBN Governor, said that an audit of shipping companies by the central bank showed that several companies were not complying.

According to some attending the virtual meeting, part of the problem was the difficulties for shippers to verify the authenticity of NXP form numbers submitted. Emefiele reassured attendees that a circular outlining the procedure to verify the NXP form numbers would soon be sent out to shipping lines and relevant agencies, including the Nigerian Shippers’ Council, Ministry of Finance, Nigeria Customs Services and security agencies. An automated service was also reportedly in the works. Emefiele emphasised the CBN’s hard line, saying: “If you don’t have it online on your system where the NXP has been registered, you turn back that cargo.”