In previous blog posts, we detailed some policies introduced by the Federal Government of Nigeria (the "FGN") (through its agencies such as the National Agency for Food and Drug Administration and Control, the National Office for Technology Acquisition and Promotion and the Federal Inland Revenue Service (“FIRS”)) to facilitate the ease of doing business in Nigeria.
The FGN’s ease of doing business policies have been encouraging, culminating in an upward movement for Nigeria in the recently published World Bank Ease of Doing Business Report 2020 (the “Report”). In the Report, Nigeria is now ranked 131 globally out of 190 countries on the World Bank ease of doing business index, which is a major improvement from Nigeria’s 2019 ranking of 146. With respect to the trading across border ease of doing business indicator, Nigeria is now ranked 179, an improvement on its 2019 ranking of 182.
To further improve the ease of doing business in Nigeria and in line with its duty to deploy appropriate technology for effective administration of the foreign exchange market and international trade, the Central Bank of Nigeria (the “CBN”) by a circular dated 28 October 2019 informed stakeholders and the general public of the automation of the Form ‘NXP’ - the Form ‘NXP’ is used for foreign exchange transactions for commercial exports (oil and gas and non-oil) of goods and services.
With the automation of the Form ‘NXP’, the CBN has now deployed an e-Form ‘NXP’ to replace the hard copy Form ‘NXP. With effect from 31 October 2019, the processing of Form ‘NXP’ will only be done electronically on the Trade Monitoring System accessible at www.tradesystem.gov.ng. As such, exporters can now electronically initiate the e-Form ‘NXP’ and submit the same to their authorised dealer bank.
To access the Trade Monitoring System for the e-Form ‘NXP’ application, exporters are required to obtain a valid Tax Identification Number (“TIN”) from the FIRS/Joint Tax Board as the TIN is a prerequisite for the grant of access to the trade system. The link created between the TIN and the Trade Monitoring System is in line with the FGN’s policy of improving the tax net and should therefore boost tax revenue.
To ensure a seamless transition process, all hard copy Forms ‘NXP’ established on or before 30 October 2019 (i.e. prior to the effective date of the automation, which is 31 October 2019) must be utilized within 90 (ninety) days of the establishment of the Form. However, all established hard copy Forms ‘NXP’ for which shipment does not taken place within the transition period of 90 (ninety) days, shall be deemed cancelled. The CBN also introduced a fee of N5,000.00 (five thousand Naira) per declaration for e-Form ‘NXP’ with effect from 31 October 2019.
 See http://www.acas-law.com/resource/blog/NOTAP_Automates_the_Registration_of_Technology_Transfer_Agreements; http://www.acas-law.com/resource/blog/FIRS_TAKE_FURTHER_STEPS_TO_IMPROVE_TAX_COMPLIANCE_RATE_IN_NIGERIA; http://www.acas-law.com/resource/blog/Nigeria_takes_further_steps_towards_trade_facilitation_with_the_integration_of_NAFDAC_e-Permit_with_e-Form_%E2%80%98M%E2%80%99_on_the_Nigerian_Trade_Portal
The contents of this news alert are meant for the general information of our clients and friends and do not amount to legal advice. All enquiries on the subject may be made to: firstname.lastname@example.org
Adepetun Caxton-Martins Agbor & Segun
9th Floor, St. Nicholas House, Catholic Mission Street, Lagos Island, Lagos State, Nigeria.
Telephone: +234 (1) 462 2094; 462 2480; 740 6743 Fax: +234 (1) 461 3140