Emefiele Directs All Shipping Companies To Satisfy Form NXP Requirements
The Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has insisted that shipping companies must ensure that all shipping documents carry the mandatory NXP number in compliance with federal government’s directive. Form NXP is used for commercial exports.
The apex bank had in October 2019, pursuant to powers conferred on it by the Foreign Exchange (Monitoring & Miscellaneous Provisions) Act, 1995 to issue guidelines regulating export and import trade transactions in collaboration with relevant governmental entities issued a circular tagged Automation of Form ‘NXP’ on the Trade Monitoring System (TRMS).
As provided in the CBN’s Revised Foreign Exchange Manual, 2018 (the Revised FX Manual), any person intending to export any product from Nigeria shall, in the first instance, process the Nigerian Export Proceeds Form (generally known as Form NXP) through an authorised dealer bank, irrespective of the value and whether or not payment is involved.
Addressing shipping companies during a virtual meeting held in Abuja yesterday, Emefiele said a circular outlining the procedure for cargo shipment would soon be sent out to shipping lines and relevant agencies including the Nigerian Shippers’ Council, Ministry of Finance, Nigeria Customs Service (NCS) and security agencies, among others in order to enforce compliance.
There had been allegations of foreign exchange infractions perpetrated through shipping lines which often violate existing regulations meant to entrench transparency in the use of forex.
But Emefiele said: “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 that 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 noted that a recent audit had revealed that several shipping companies were found wanting in observing extant shipping regulations, adding that non-compliance would attract strict sanctions going forward.
However, the Executive Secretary/Chief Executive, Nigerian Shippers’ Council (NSC), Mr. Hassan Bello, said the council in partnership with the apex bank has carried out three sensitisation meetings in Lagos and Port Harcourt to educate shipping companies and exporters on the need to implement the directive on the NXP.
According to the Head of Public Relations of NSC, Mrs. Rakiya Zubairu, Bello said the council would work with other agencies of government to ensure full compliance, so that export without the NXP is discontinued.
Shipping companies at the virtual meeting included Maersk Line Nigeria Limited, Ocean Network Express Nigeria Limited, MSC Nigeria Limited, Golden shipping Company and Grimaldi Nigeria Limited.