Exporters decry NXP system implementation delay

Exporters have voiced their frustrations over delays in the implementation of the Nigerian Export Proceeds (NXP) system due to bureaucratic bottlenecks and inefficiencies that disrupt export operations.

Their concerns are further compounded by the Federal Government’s proposed reinforcement of the Export Prohibition Act to curb food smuggling and address the country’s growing food crisis.

The NXP system, recently mandated for booking exports via the electronic call-up system (Eto), was introduced to enhance transparency and streamline export logistics.

Initially scheduled for implementation in June 2024, its implementation has faced repeated postponements, with no clear timeline currently in sight. The system has remained stalled, leaving exporters and transporters in limbo with continued logistical challenges and mounting uncertainties.

Adding to exporters’ concerns, the House of Representatives recently called for the enforcement of the Export Prohibition Act of 2004, urging the Ministry of Agriculture and Food Security to incentivise farmers to increase productivity while restricting certain exports to stabilize domestic food supplies.

However, exporters warn that delays and indiscriminate restrictions could damage the sector. The Public Relations Officer of the Shippers Association of Lagos State (SALS), Ike Nwagbo, criticised delays in implementing the NXP platform, despite the Central Bank of Nigeria’s (CBN) efforts to operationalise the system.He lamented entrenched corruption in port operations, self-serving interests and overlapping government roles as significant barriers to export efficiency.

Nwagbo also blamed systemic corruption for the persistent failure of the NXP initiative, adding that exporters are left frustrated by a lack of progress and transparency in port operations.

“Corruption is the root cause of inefficiencies in our export sector. Customs publishes export regulations via gazettes when instructed by the Department of Finance, but enforcement remains weak,” Nwagbo said.

The Chief Executive Officer of Hallmark Investment, emphasised the need for clear government guidelines on restricted export items, cautioning that indiscriminate bans could harm the nation’s export sector. He said export restrictions should balance local needs with the economic benefits of trade.

“We need clarity on what can and cannot be exported. Blanket restrictions on items like maize, especially when they were imported last year to mitigate shortages, make no sense without proper guidelines,” he stated.

Inaolaji also criticised the regulatory agency at the port for inefficiencies in export handling, attributing unnecessary delays to disorganisation. He noted that current delays are primarily due to reduced vessel turnaround times.

“Fewer vessels are available for exports, with only about three vessels serviced monthly. The frequency of vessel arrivals has dropped significantly,” he added. One of the stakeholders, Ayopade Omolale, highlighted the negative impact of overlapping roles among government agencies on export efficiency. He noted that the duplication of responsibilities, particularly in the agricultural export sector, increases costs and hampers smooth operations.

“Agencies like the Nigeria Quarantine Service often overlap with other government bodies in performing their duties, leading to inefficiencies and additional costs for exporters,” Omolale stated.

He urged the government to address systemic inefficiencies, improve transparency and provide clear policies to stabilise the export sector and support Nigeria’s economic growth.

Omolale stresses that a thriving export industry is critical to Nigeria’s economic stability and growth. While the proposed reinforcement of the Export Prohibition Act aims to address food insecurity, Omolale argued that a collaborative approach involving all stakeholders is necessary to ensure that trade policies support both local consumption and international trade