CBN Threatens Sanctions On Erring Shippers, Shipping Firms

• Reads riot act on NXP compliance check

BY COBHAM NSA, ABUJA – The Central Bank of Nigeria (CBN) is furious that Shipping Lines and Shippers are flouting with impunity existing directives on all export goods leaving the country and causing huge revenue loss to the Federal Government.

Consequently, the apex Bank warned that non-compliance with the order that all export goods carry Nigerian Export Proceeds (NXP) numbers will attract serious sanctions.

These were highlights from discussions at the recent virtual meeting convened by the CBN and chaired by its Governor, Mr Godwin Emefiele

Mr Emefiele said following government’s directive on the audit of shipping companies to ensure all shipping documents carry the NXP number, the CBN discovered that several firms were found wanting and culpable in abusing the various processes

Warning that non-compliance would henceforth attract strict sanctions, the CBN Governor 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 on line 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.”

At the meeting attended by the representatives of some shipping firms in the country, the CBN governor sought answers concerning the disturbing issue of non-compliance with government’s directives as well as existing challenges in the sector, especially as they relate to the NXP.

He disclosed that a circular outlining all the procedures would soon be in the public domain to give proper guidance and direction to all shipping lines and relevant agencies, such as the Nigerian Shippers’ Council (NSC); Federal Ministry of Finance; Nigerian Customs Services (NCS); and security agencies among others.

Addressing the meeting, Executive Secretary and Chief Executive Officer (CEO) of Nigerian Shippers’ Council (NSC), Mr Hassan Bello, said Council, in partnership with the CBN, has so far held three sensitization meetings in Lagos and Port Harcourt to educate and create awareness among shipping companies and exporters on the need to ensure effective implementation of the NXP’s directive.

Bello said the NSC would liaise with other agencies of government to ensure full compliance so that going forward, exports without the NXP would no longer continue.

In his remarks, the Managing Director, MSC Nigeria Limited, Andrew Lynch, explained that his firm receives NXP forms on all major agro commodities like cashew, cocoa and sesame, but not for commodities such as charcoal and timber.

According to him, it was discovered that the listed items do not have NXP forms only after their arrival at the port, adding that once cargoes get to the port and gotten clearance from the Nigeria Customs, there is always pressure to ship them immediately due to space constraints at the port.

He said among challenges facing the companies is their inability to independently verify the authenticity of an NXP Form.

Also speaking at the forum, Managing Director of Grimaldi Nigeria Ltd, Ascanio Russo, said aside not being able to verify the authenticity of the NXP Form, his firm is also unable to access CBN’s online portal for necessary information.

Among the shipping companies at the virtual meeting were Maersk Line Nigeria Limited; and Ocean Network Express Nigeria Limited.

Others include: MSC Nigeria Limited; Golden shipping Company; and Grimaldi Nigeria Limited.