By Merit Ibe

The Manufacturers Association of Nigeria (MAN) has emphasised the  need for the Central Bank of Nigeria ( CBN) to  accommodate  stakeholders input, especially those whose businesses would be negatively impacted by its introduction of policy guidelines  on e- valuation and e-invoicing for import and export.

The Director General, Segun Ajayi-Kadir, who made the remark, applauded  efforts of the CBN and by extension the Federal Government to sanitise foreign trade transactions which has some measure of impact on the foreign exchange profile of the country.

Ajayi- Kadir opined that there should also be a clear step-by-step process of transaction under the guidelines. He maintained that government should ensure it does not inadvertently create a regime of chaos that will negatively impact the already low level of activity in the manufacturing sector and the economy as a whole. “We should avoid a situation that will give the regulators a leeway to ride roughshod over private business owners who are already groaning under an inclement operating environment.”

He said it was  necessary that the apex Bank’s attention be drawn to some issues that require clarifications and others that should be reviewed. 

Though the House of Representatives has directed the CBN to suspend the implementation of the policy, the manufacturers said it supports the directive to the apex bank to adopt a 90-day timeline for the implementation of fiscal measures to avoid destabilising effects on the economy.

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Outlining the association’s view  on the guidelines, the DG said the  new regulation which is primarily aimed at achieving near accurate value of imports and exports in Nigeria, it, however said it was worried about the determination of global price verification mechanism and benchmark prices.

“What happens if some companies are able to negotiate better prices due to their scale of order and are able to get competitive lower prices? Will these competitive prices be within the benchmark? Clearly, this aspect of the policy will lead to several challenges on valuation down the line including a floodgate of valuation issues with Nigeria Customs Service (NCS).”

 He said the association also seeks clarification on paragraph D of the guidelines; wherein the CBN is directed that “ the content of the electronic invoice authenticated by Authorized Dealer Banks is only advisory for the Nigeria Customs Service (NCS). This means that the NCS may vary it, probably uplift the FOB when issuing the PAAR. MAN considers CBN and NCS as agencies of the Federal Government and hence should harmonise their functions in this regard. Otherwise, businesses and indeed our members, will be subjected to paying unnecessary and additional FOB upliftment to the Nigeria Customs Service. This is in addition to a situation that may arise where the CBN forces such importer or manufacturer to reduce its price if it is considered not to be in conformity with the benchmark pricing.

 “In paragraph H, the CBN directs supplier and buyers to transmit their authenticated invoices through the CBN appointed Service Provider to the Nigeria Single Window portal. While MAN considers this measure as a step to check perceived malpractices, we believe that the essence of Single Window’ policy is being diminished and this could introduce unnecessary bureaucracy with attendant multiple charges. We are already contending with this type of anomaly and could ill afford any addition. It will also be a disincentive to local and foreign investors. 

“Finally, the annual subscription fee charge of $350 per authentication by suppliers on the portal meant to maintain the system, is a clear disincentive to suppliers of imports to Nigeria, particularly raw materials and spares for manufacturers. This has potential of triggering a run-on Nigeria business by their foreign partners and simultaneously encourage these suppliers to look elsewhere in the region as well as the continent,” the DG said.