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FG urged to review export policies to boost revenue

By on October 17, 2015

The federal government has been enjoined to review existing export laws that have continued to limit export, thereby denying Nigeria of foreign exchange.

South West Professional Forum (SOWPROF), gave the advice in a statement made available to THISDAY.

According to the stakeholders,  President Muhammadu Buhari  will not  achieve his major task of turning around the economy by creating jobs, but by initiating policies that would boost export and move the country towards self-reliance.

Speaking on behalf of other members of SOWPROF, a member of Nigerian Indigenous Economic Development Alliance (NIEDA), Dr Akinola Adebosin said critical to the government’s effort was its export policy direction.

He said: “For instance, the new regulation for exporters is that cash must be sold to banks at the official rate or be used by exporters to fund their imports. This policy was introduced in the dying days of the former regime. The government hopes this will stabilise the forex market. This decision was taken on the heels of the Presidential election when the country was on the edge of the tentacles.”

He stated that the policy itself was a mismatch adding, “For instance, instead of those who bring their US dollars to their ordinary domiciliary account who can sell their US dollars at transfer market (currently its N237/$1),  exporters are forced to sell their inflows with official market which is N199/$1.”

He argued that exporters should be able to sell their inflows in the free market. This, he said, was the standard practice in most economies that have blossomed.

“The basic reason is that their inflows are for the products that they sold based on genuine transactions.  The source of others inflows are unknown. If they want to keep record and block money laundering the CBN must make it difficult to use inflows without eligible transactions. Again, there is the issue that genuine exporters are making their transaction while adhering to the letter of the law.

“They open their Nigerian export proceeds (NXP) forms and they pay their Nigerian Export Supervision Scheme (NESS) payment which is 0.5 per cent of Free On Board (FOB) value. Government appointed inspection agencies inspect (at same level) and they issue CCI accordingly. They are being charged N5,250 as NXP fee and N5,250 CBN declaration for repatriation.  “Yet, they have to repatriate the funds back to the country within 180 days or face sanctions,” he said.

 

[ThisDay]