Exports from Nigeria must comply with memorandum 11 of forex manual —CBN

The Central Bank of Nigeria(CBN) has directed all authorized dealers in foreign exchange (forex), exporters and the general public to ensure that bills of lading in respect exports from Nigeria carries the form NXP number of the underlying cargo.

This is even as the Federal Government through its appropriate agencies has begun enforcement of the

50per cent import duty and an extra $1,500 levy on each metric tonne of tomato concentrates.

The apex bank through a circular signed by the Director, Trade and Exchange Department of the CBN, W.D. Gotring stated that the directive on form NXP is in line with effort to ensure that all export transaction through the formal channels.

“Consequently, all exporters are required to register forms NXP with an Authorised Dealer of their choice prior to shipment in line with Memorandum 11 section 1(a)(i).

“For the avoidance of doubt, it shall be a breach of extant regulations for any shipper to take on- board any cargo for which a form NXP is not duly completed by the exporter,” the circular which takes immediate effect read in part.

Meanwhile, the Federal Government in April increased the tariff on importation of tomato concentrate to 50 per cent alongside an additional levy of $1,500 per metric tonne from May 7. Its effect has been likened to that of the 41 items declared ineligible for forex by the CBN.

Under the new policy, the Federal Government classified greenhouse equipment as agricultural equipment in order to attract zero per cent import duty. It stopped the importation of tomato paste, powder or concentrate put up for retail sale; stopped the importation of tomatoes preserved otherwise by vinegar or acetic acid and restricted the importation of tomato concentrate to the seaports.

Minister of Industry, Trade and Investment, Dr Okechukwu Enelamah, said the new measures became effective 30 days after April 7 2017, when the ECOWAS secretariat was notified.

Enelamah explained that the policy seeks to increase local production of fresh tomato fruit required for fresh fruit consumption and processing; increase local production of tomato concentrate and reduce post-harvest losses.

Nigeria imports an average of 150,000 metric tons of tomato concentrate per annum valued at $170 million mostly due to inadequacy in capacity to produce tomato concentrate. Current demand for fresh tomato fruits is estimated at about 2.45 million metric tons per annum (MTPA) while the country produces only about 1.8 million MTPA.