By Christiana Ekpa
The Central Bank of Nigeria (CBN) and the Nigeria Customs Service (CBN) on Thursday disagreed over the e-valuation, e-invoice policy for import and export introduced by the apex bank.
The disagreement happened when the agencies and other stakeholders appeared before the House of Representatives Committees on Customs and Excise as well as Banking and Currency to address issues arising from the introduction of the new system by the CBN.
While the CBN said the new system would plug leakages and enable the governemnt to recover more funds, the Customs said it was in violation of the law, did not follow due process and would encumber trade.
Also the Manufacturers Association of Nigeria (MAN) said the policy was too hasty and was done without inputs from relevant stakeholders.
The CBN had issued a circular that the new system would kick off on February 1, 2022, but the House had on January 27, 2022 suspended it and directed the apex bank to adopt a 90-day timeline for the implementation of fiscal measures to avoid destabilising effects on the economy.
The resolutions followed a motion moved by Chairman of the Committee on Customs and Excise, Leke Abejide.
During the meeting on Thursday, Director, Trade and Exchange of the CBN, Dr Ozoemena Nnaji, said the new system was seamless and integrated with the import and export process in a manner that does not hamper any of the stakeholders.
She said the price of goods involved in a trade transaction is sometimes manipulated by those wishing to launder the proceeds of through the financial system and some regulators suggested that a simple way to identify such activities is by banks implementing a price check on all trade transactions.
This, she said, is the goal of the new system that the CBN in collaboration with other MDAs is implementing.
“This would be one way of ensuring what we should earn in trade comes to us without loss of foreign and duties. The main aim is to ensure that we allocate our scarce foreign exchange resources to imports and we collect the export duties and transaction values due to us at valued market rates,” she said.
She said an analysis of trade invoicing in Nigeria in 2014 show that the potential loss of revenue to the government was approximately 2.2 billion for the year, an amount, which represents, four percent of total annual government revenue as reported by the IMF, and representing approximately 15 percent of the country’s total trade.
But Assistant Controller General of Customs, Galadima Saidu, among other concerns, said the new CBN policy was violation of World Organization Trade Facilitation Agreement of which Nigeria is a signatory.
He said the use of bench-marking in valuation would negate the aim of the agreement on Customs valuation and would result in delays and uncertainties.
He said the use of bench-marking in valuation was abolished due to the dynamic nature of pricing especially in this current time when technology is rapidly evolving.
