Investigations by Shipping Position Daily have revealed that despite multiple deadlines, the implementation of the Nigerian Export Proceeds (NXP) system has remained uncertain, causing frustration among key stakeholders in the non-oil export sector.
The NXP requirement, recently mandated for booking exports through the electronic call up system (Eto) is seen as a crucial step in reducing traffic congestion and enhancing the efficiency and transparency of export deliveries.
Despite initial plans to start the initiative in June, it was later postponed to the first week of July. Currently, there are clear indications that the implementation is yet to begin; leaving exporters and transporters grappling with continued uncertainties and logistical challenges.
Shipping Position Daily recalls that Truck Transit Park (TTP) Limited, operators of the electronic call-up system had announced the introduction of Nigeria Export Proceeds (NXP) as a prerequisite for booking export trucks on its eto platform. The new guidelines were to be effective from June, 3, 2024.
In a statement issued and sent to all its stakeholders, Truck Transit Park disclosed that the new measure was sequel to the directive of the Federal Government, through the Nigerian Ports Authority (NPA). The firm explained that the new measure is essential to ensure that all export transactions are properly documented in adherence to the government regulatory standards.
When contacted after the missed deadline for implementation later in June, a staff at the Public Relations Unit of TTP; Nancy Nnamdi responded that the introduction and enforcement of the NXP requirement had not started following the two-day industrial strike by the Nigerian Labour Congress (NLC) and Trade Union Congress (TUC).
About a month later, our correspondent contacted TTP for an update, and in response to inquiries regarding the new NXP requirements for booking trucks, Nnamdi clarified that the initiative is still at the developmental phase.
Industry stakeholders who spoke to Shipping Position Daily blamed the Central Bank of Nigeria (CBN) for causing delays and inefficiencies in the export procedure.
However, in a chat last week with TTP, Nnamdi provided an update on the situation, noting that the NPA is awaiting the conclusion of discussions with the CBN and other relevant parties. She further highlighted that several “grey areas” needed to be thoroughly discussed and aligned by all stakeholders before the system can be rolled out effectively.
“The NPA is still actively engaging with the CBN and other stakeholders to finalize modalities for deployment. We are currently waiting for them to conclude these discussions and provide instructions on the deployment timeline.
“There are a few grey areas that need to be properly addressed and aligned by all stakeholders, before we can proceed with the deployment,” Nnamdi added.
Also speaking, a prominent exporter and Chief Executive Officer of Hallmark Investment, Alhaji Nofiu Inaolaji expressed his concerns over the delays, pointing fingers at the NPA and questioning the agency’s role in the ongoing challenges.
According to Alhaji Inaolaji, NPA’s attempts to exert control over the NXP system has only added to the complexity of the export process. He emphasized that the central bank is the sole authority with the mandate to regulate export procedures, and any changes to the system should come from the CBN, not the NPA.
The exporter argued that the NPA’s role should be limited to regulating port activities, rather than encroaching on trade facilitation, which is primarily the responsibility of Customs, shipping companies, and terminal operators.
He however called on the relevant authorities, particularly the CBN, to take decisive action to ensure that the NXP system is implemented without further delay. He stressed that the success of the system is crucial for Nigeria’s economy, as it would enhance transparency, improve revenue collection, and boost the country’s export potential.
“The NXP system, introduced by the Central Bank of Nigeria was designed to streamline the export process, capturing all necessary details for export transactions. However, the NPA seems intent on interfering with this system, despite not being directly involved in its operations.
“Even the Central Bank of Nigeria doesn’t recognize the NPA’s authority in this matter. The NPA’s involvement could potentially disrupt the movement of export cargo, causing unnecessary delays and confusion. Exporters are already burdened with an overwhelming number of documentations.
“The current process involves nearly 11 different forms, far more than what is required in other countries. Adding another layer of bureaucracy through the NPA’s involvement will only make matters worse,” Alhaji Inaolaji lamented.
On his part, the General Secretary of the Association of Maritime Truck Owners (AMATO), Bala Muhammed affirmed that the system is still being fine-tuned by the Central Bank of Nigeria in collaboration with other stakeholders.
However, Muhammed informed that some exporters still upload NXP numbers in the system. “There are specific numbers exporters upload on the NXP system, but it seems it is yet to be implemented. It’s the exporters and their agents who are now handling the bookings. Previously, truck drivers and others involved in logistics could access the booking system directly, but that has changed” Muhammed disclosed.
