CBN Introduces Electronic Systems for Commercial Exports

By Adedapo Adesanya

Following the digital wave that is changing transactions and market systems, the Central Bank of Nigeria (CBN) has introduced electronic forms for commercial exports (e-Form NXP) to replace the traditional hard copy form that was in place.

This new directive was announced in a circular signed by Dr O.S. Nnaji, on behalf of the Director, Trade and Exchange Department and issued to all authorized dealers, the Nigeria Customs Service, pre-shipment inspection agents, shipping lines and the general public.

The e-Form NXP will take effect from Thursday, October 31, 2019 as all authorised dealers have been required to ensure that the processing of the form is done electronically on the Trade Monitoring System accessible at www.tradesystem.gov.ng.

The export customers were also required to obtain a valid Tax Identification Number (TIN) from the Federal Inland Revenue Service (FIRS)/Joint Tax Board.  According to the apex Bank, this TIN will enable customers to access the trade system for e-Form NXP application.

The document reads in part: “The e-Form NXP is web-based and allows exporters to initiate the Form from their offices/homes same to the authorised dealer bank. A charge of N5,000 as fee per declaration for e-Form ‘NXP’ is applicable with effect from October 31, 2019 and henceforth.

“There will be a direct debit of the processing banks’ current account for each declaration which should be recovered from the customer by the bank. However, the charge on the customer for the e-Form ‘NXP’ should be separated from other banks’ charges.

“All hard copy Form ‘NXP’ established on or before October 30, 2019 (prior to the commencement of the e-Form ‘NXP’) shall be utilised within 90 days of the establishment of the form.  For the avoidance, all established hard copy forms ‘NXP’ for which shipment has not taken place within the transaction period of 90-day shall be deemed cancelled. All authorised dealer banks are enjoined to inform their customers of this development for compliance.”

This new development will also cover oil and gas and non-oil commercial exports.