Findings by Shipping Position Daily have revealed that the suspension of the implementation of the Nigerian Export Proceeds (NXP) system by the Central Bank of Nigeria (CBN) has thrown the export community into a state of confusion, with stakeholders offering conflicting accounts on its current status and impact on export operations.
While some port stakeholders and exporters have welcomed the suspension as a step towards resolving long-standing delays in cargo movement, others argue that the NXP is still operational, thereby deepening uncertainty surrounding its implementation.
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 multiple take-off deadlines, the implementation of the NXP system remains elusive, causing frustration among key stakeholders in the non-oil export sector.
Despite initial plans to start the initiative in June 2024, it was later postponed to the first week of July 2024. Currently, there are clear indications that the implementation is yet to begin, leaving exporters and transporters grappling with continued uncertainties and logistical challenges.
Confirming the suspension during a recent press briefing, the Lilypond Export Command, Customs Area Controller (CAC) Comptroller Ajibola Odusanya revealed that the NXP which was initially introduced by the CBN in collaboration with the Nigerian Ports Authority (NPA) had become a major stumbling block to seamless export operations.
According to him, the insistence on exporters submitting a fully populated NXP form with detailed container lists before gaining port access was impractical and counter-productive. He blamed the policy’s failure on a lack of coordination between the implementing agencies.
Odusanya emphasized that the policy, although not financially beneficial to Customs, undermined the Federal Government’s drive to promote non-oil exports and required holistic review to avoid stifling the export sector.
“At the time when they expect the NXP to contain the list of containers; the list is not yet available. If exporters wait for that, some goods may spoil, and contracts may be lost. It was a problem that came from the NPA; not fully understanding the NXP. As soon as we held a meeting, they saw that the way it was designed couldn’t work. So it was suspended.”Odusanya explained.
Corroborating the CAC, Mr. Olubunmi Olumekun, President of the Association of West African Exporters and Marine Professionals (AWAEMAP), last week confirmed that the suspension has led to improved cargo movement. He stressed that the rigid structure of the NXP form, coupled with unrealistic expectations around container details at the early stages of the process, rendered the policy ineffective.
Speaking exclusively with Shipping Position Daily, Olumekun explained that since the suspension, exporters have reverted to previous operational procedures, which have proven to be more efficient than the recently-imposed NXP requirement. He described the earlier policy as both unnecessary and poorly aligned with the practical realities of Nigeria’s export system.
Olumekun further criticized the idea of trade facilitation through shortcuts, insisting that by-passing due processes in the name of ease of doing business only creates more confusion and breaks regulatory protocols.
“Yes, it has somehow taken off. It was what we were doing before that we are now doing currently “Since then, we are having some improvement on the movement of the export cargo. It has been positive compared to the last time. The NXP has been suspended.” Olumekun said.
However, when contacted last week, the management of Truck Transit Parks Limited (TTP), operators of the Electronic Truck Call-Up System (ETO), dismissed reports of the suspension of the NXP, labeling it as misleading and inaccurate.
In an exclusive chat with our correspondent, TTP’s spokesperson, Nancy Nnamdi, insisted that the NXP form remains a mandatory requirement for export booking across all Export Processing Terminals (EPTs) under the ETO platform.
According to her, “The reports on the suspension of the NXP are inaccurate. The NXP is still active. All Export Processing Terminals (EPTs) have been using the NXPs and it is a requirement for booking export till now. It’s still working. It is not suspended on ETO.”
Last week, the Lilypond Customs Command spokesperson, Mrs Bukola Olusola-Oke confirmed that the NXP has been suspended at the Lilypond Export Command. According to the officer, the decision to halt the use of the NXP Form stemmed from persistent discrepancies between clearing agents and the Nigerian Ports Authority (NPA), which have reportedly plagued the system for an extended period.
“Yes, the implementation of the NXP has been currently suspended at Lilypond Export Command. The question of why it was suspended should be directed to the Central Bank of Nigeria. There were discrepancies between the clearing agents and NPA. We were having issues over a long time ago, so I wouldn’t know what led to the discrepancy.” the Customs spokesperson confirmed.
