EXPORT: How CBN’s Policy On NXP is Causing Anxiety At Nigerian Ports

The Shippers Association Lagos State (SALS) have said that the compulsory registration of Nigerian Export Proceed (NXP) number, a policy introduced by the Central Bank of Nigeria (CBN) in year 2020.

President of SALS, Rev Jonathan Nicole raised alarm at the weekend, saying that over 28 export containers are being detained at the port due to cumbersome processes and challenges with NXP.

He said the containers are now being investigated by the Inspector General of Police, even as the containers remain fallow at the port.

Recall that the CBN had in October 2020 threatened to sanction exporters who ship out goods without NXP numbers.

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.

Many stakeholders have knocked the policy, saying that the CBN failed to consult with stakeholders before introducing it, and that the NXP is now denying the country of much-needed foreign exchange.

According to Rev Nicole, “There was huge movement of export cargo during the harvest period in the third and fourth quarters of last year. The Nigerian Export Proceed (NXP) number compulsory registration created a bottleneck that almost suffocated the entire export trade.

“Export cargoes were rejected for lack of space while exporters battled with registration on the Central Bank platform”

“So many export cargoes were detained, especially the exports from Minna Shippers Association for reasons beyond the exporters due to unworkable Federal Government import and export adjustments policies.

Also speaking on the challenges of the NXP number on exports, Secretary-General, National Cashew Association of Nigeria, Sotonye Anga, lamented that a lot of cargoes are perishing at port terminals while they had waited endlessly for NXP number.

Anga said: “We have been having issues with the NXP validation, which is a new procedure that CBN introduced. It came in so 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.”

He urged the CBN to suspend the programme.