Nigerian Exporters have expressed frustration over ongoing challenges with the implementation of the Nigerian Export Proceeds (NXP) system, citing delays and bureaucratic hurdles that hamper smooth export operations.
This is even as they have voiced concerns about the potential impact on trade as the government considers reinforcing the Export Prohibition Act to curb food smuggling amidst the nation’s food crisis.
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 still yet to begin leaving exporters and transporters grappling with continued uncertainties and logistical challenges.
Recall that recently, the House of Representatives urged the federal government to urgently enforce the Exports (Prohibition) Act, 2004, as a strategy to curb food smuggling and address food insecurity in Nigeria. The House also called on the Federal Ministry of Agriculture and Food Security to offer more incentives to farmers to boost agricultural productivity.
However, speaking with Shipping Position Daily recently, a prominent exporter and Chief Executive Officer of Hallmark Investment, Alhaji Nofiu Inaolaji voiced concerns over the potential impact of this policy on trade while emphasized the need for the government to provide clear guidelines regarding which items would be restricted from export.
While acknowledging that certain items such as maize were previously imported to mitigate local shortages, Inaolaji emphasized the importance of the government providing updated guidelines for exporters to avoid further confusion.
Inaolaji argues that indiscriminate restrictions could harm the country’s export sector. He said many believe that the government should focus on creating a balance between local needs and the economic benefits of export trade, rather than outright prohibitions that may stifle growth.
Speaking on the implementation of NXP, Inaolaji noted that expressed frustration pointing fingers at the Nigerian Ports Authority (NPA) over inefficiencies in handling exports. He stated that the NPA appears disorganized and uncertain in its approach to export logistics, which has contributed to unnecessary delays in the export process.
Despite these issues, Inaolaji praised the Nigeria Customs Service for their consistent performance. He clarified that any delays currently being experienced are largely due to vessel turnaround times, with fewer vessels available for export.
“We can service about three vessels a month which indicates that the frequency of vessel arrivals has dropped significantly. There is a massive importation of maize last year which the government granted. I don’t see anything reasonable in exporting these at the same time. However, the government hasn’t come out with any of these prohibition lists, maybe yam or other restricted items.”
On his part, the Public Relations Officer of the Shippers Association of Lagos State (SALS), Mr. Ike Nwagbo, also expressed frustration over the persistent challenges plaguing Nigeria’s export sector, citing corruption and self-serving interests as major obstacles.
Nwagbo explained that while export regulations, including provisions on certain food items, are typically published by the Customs Service via gazettes, enforcement and implementation often fall short. Addressing concerns over delays in export processes, he blamed the systemic corruption entrenched in Nigeria’s governance and port operations.
The SALS PRO further criticized the lack of progress on the implementation of the NXP, pointing out that despite efforts by the Central Bank of Nigeria (CBN) to implement the platform, it has yet to be fully operational, adding to the frustrations of exporters.
“Implementation of the Nigerian Export Proceeds, especially concerning the NXP form, has been dragging. The CBN has been trying to see if they can start full implementation of it, but it seems like it’s not working yet.
“Customs publishes export provisions whenever the Department of Finance instructs them… but nothing is working in Nigeria because of corruption,” Nwagbo said.
In a similar vein, Ayopade Omolale stressed the rampant overlapping roles of government agencies at the port. According to him, this duplication, particularly in the export sector, contributes to inefficiencies and raises costs, making the business environment more challenging for Nigerians involved in international trade.
Omolale also highlighted the burden that duplicative agencies place on Nigerian businesses, particularly exporters. He noted that agencies such as the Nigeria Quarantine Service, which are supposed to handle agricultural exports, are often required to share their duties with other government bodies performing similar roles, leading to inefficiencies and increased costs.
