BUSINESS
MAN Faults CBN’s e-valuation, e-invoicing Guidelines, Seeks 90-day Extension of Commencement
From Anthony Nwachukwu, Lagos
Citing a lack of dialogue with stakeholders who the policy will adversely affect, the Manufacturers Association of Nigeria (MAN) has urged the Central Bank of Nigeria (CBN) to postpone by 90 days the commencement of its recently released import/export guidelines billed to take effect on February 1, 2022.
The 90-day window will enable the apex bank clarify and review contending issues, the MAN Director-General, Segun Ajayi-Kadir, explained in the association’s reaction to the January 21st mandate titled, “Guidelines on the Introduction of e-Valuation, e-Invoicing for Import and Export in Nigeria.
”Among the issues, MAN stated that though the guidelines were intended to sanitise foreign trade transactions, as they have some impact on Nigeria’s foreign exchange profile, the 11-day grace before implementation is “hasty.
”“A circular on monetary or fiscal guidelines requires adequate adjustment time,” it argued. “This is more so when it involves international trade and transactions, where a minimum of 90 days allowance is normally required, as many operators would have opened Form M and concluded deals either for import of export.
“One must say that transactions already embarked upon before the commencement of the guidelines should be exempted and the commencement date extended by a minimum of 90 days.”
Stating that the regulations are primarily to achieve a near accurate value of imports and exports in Nigeria, it noted that by implication, any Form M or NXP that bears a unit price in excess of 2.5 per cent of the verified global checkmate price will not be approved.
“This is concerning, as it will checkmate the opportunity of our exporters to derive higher value for their exports. Besides, we are 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 the Nigeria Customs Service (NCS).”
MAN also seeks clarification on the CBN’s directive that “…the content of the electronic invoice authenticated by Authorised Dealer Banks is only advisory for the Nigeria Customs Service (NCS),” stating: “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 uplift by the NCS.
“This is in addition to a situation that may arise where the CBN forces such importer or manufacturer to reduce price if considered not in conformity with the benchmark pricing.” It also faulted the directive to suppliers and buyers to transmit their authenticated invoices through the CBN appointed service provider to the Nigeria Single Window portal.
Accordingly, “while MAN considers this measure 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. It will also be a disincentive to local and foreign investors.
Also, “the annual subscription fee 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 on Nigerian businesses by their foreign partners and simultaneously encourage these suppliers to look elsewhere in the region as well as the continent.”
The Securities and Exchange Commission (SEC) says it is organising a compliance summit for Chief Executive Officers (CEOs) and Compliance Officers to address Financial Action Task Force (FATF) and related issues.
The Director-General of SEC, Dr Emomotimi Agama, said this in a statement made available on Saturday in Lagos.
He said that the summit, with the theme, “Navigating regulatory challenges: Aligning with changes in FATF in the era of VASPS,” would be in Lagos on Oct.
21 and Oct. 22.According to him, SEC aims to equip capital market operators with the necessary tools and knowledge to thrive in a complex regulatory environment.
Agama said that the Nigerian Capital Market Institute (NCMI), a subsidiary of SEC, would hold the summit.
He noted that the summit would ultimately foster a culture of compliance and integrity in the operations of the participants.
“The aim is to equip capital market operators with essential insights and strategies to effectively navigate the evolving regulatory landscape.
“Attendees are to gain knowledge of understanding regulatory changes, clarity on the latest updates to FATF standards and how these impact Virtual Asset Service Providers (VASPs).
“They will also learn best practices for aligning their compliance programmes with new regulations, ensuring they meet international standards that enhance compliance frameworks in their organisations,” he said.
According to him, key objectives of the summit are regulatory compliance, understanding and implementing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations.
Others, he added, would include risk management, which encompasses identify, assess and mitigate risks associated with virtual assets and operational efficiency which would lead to enhanced internal controls, governance and compliance frameworks.
The director-general mentioned that the benefits of the summit include regulatory clarity, risk reduction, enhanced governance, competitive advantage and networking opportunities.
The welcome address at the summit is expected to be presented by Ms Frana Chukwuogor, Executive Commissioner, Legal and Enforcement, SEC Nigeria.
The opening remarks and overview of the summit will be delivered by Dr Agama while Ms Hafsat Bakari, Director, Nigeria Fraud Intelligence Unit(NFIU) will present a goodwill message.
Among the speakers expected at the event are, Mr Obinna Iwuno, Chairman, Stakeholders in BlockChain Association of Nigeria (SiBAN) and Certified Cryptocurrency Compliance Specialist and Investigator, Mr Ade Bajomo.
Also, Mr Zacch Adedeji, Executive Chairman, Federal Inland Revenue Service (FIRS), President, Fintech Association in Nigeria, Mr Peter Shodipo, and the President, Committee of Chief Compliance Officers of Capital Market Operators in Nigeria (CCCOCIN) among others.(NAN)
To end the week, the stock market rebounded from previous losses, gaining N74 billion.
Investor interest in MTN Nigeria, FBN Holdings, Guaranty Trust Holding Company (GTCO) and other equities lifted the market.
Notably, the market capitalisation opened at N56.014 trillion, adding N74 billion or 0.
13 per cent to close at N56.088 trillion.The All-Share Index also advanced by 0.
13 per cent, or 129.44 points, closing at 97,606.63, compared to 97,477.19 recorded on Thursday.As a result, the Year-To-Date (YTD) return increased by 30.54 per cent.
The market breadth closed positive, with 31 gainers and 19 losers on the floor of the Exchange.
On the gainers’ chart, Consolidated Hallmark Plc and Sterling Nigeria led by 9.
45 per cent each to close at N1.39 and N4.98 per share respectively.Mecure followed by 9.19 per cent to close at N10.10, Regency Alliance Insurance gained 9.09 per cent to close at 72k, while Fidson Healthcare Plc increased by 8.24 per cent to close at N15.10 per share.
Conversely, Deap Capital Management and Trust led the losers’ chart by 9.93 per cent to close at N1.36, NEM Insurance trailed by 9.71 per cent to close at N7.90 per share.
Daar Communications also lost 9.52 per cent to close at 57k, Tantalizers shed 9.09 per cent to close at 60k, while Dangote Sugar declined by 3.31 per cent to close at N31 per share.
Analysis of the market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 20.33 per cent.
A total of 304.43 million shares valued at N5.60 billion were exchanged in 6,950 deals, compared with 277.75 million shares valued at N4.65 billon in 7,091 deals traded in the previous session.
Meanwhile, Access Corporation led the activity chart in volume and value with 68.26 million shares valued at N1.34 billon.(NAN)
The Ministry of Petroleum Resources has inaugurated a Technical Working Group to enhance gas reticulation practices in Nigeria’s building industry.
The ministry’s Permanent Secretary, Amb. Nicholas Ella inaugurated the Technical Working Group (TWG) between the National Gas Expansion Programme (NGEP) and the Council of Registered Builders of Nigeria (CORBON) on Wednesday.
Reports= says that reticulation refers to the process of creating a network of pipes or tubes to distribute gas or other utilities to buildings or industrial sites.
The permanent secretary restated the importance of creating energy smart cities, saying that modern urban development relies on efficient gas and utility distribution systems,
“Most modern cities in developed countries have evolved to energy smart cities where energy, specifically gas and other utilities are piped to districts and estates.
“However, one of the key tools in creating energy smart city is the National Building
Code which, in essence, sets the guidelines on Building Pre-design, designs, construction and post-construction stages,” he said.
The permanent secretary reiterated the benefits of reticulated gas systems for households and businesses alike, adding that it ensured metered supply akin to water and electricity,
According to him, it eliminates the need for cumbersome refills, and also enhances safety by burying pipes and incorporating advanced safety equipments.
“The TWG is tasked with designing a comprehensive policy to implement best practices for gas reticulation using LPG, PNG, and Bio-Gas across Nigeria’s building sector.
“Key responsibilities include reviewing the current National Building Code, examining global gas distribution systems, and proposing quality standards for materials used in gas installations,” he said.
The permanent secretary emphasised the need for rigorous safety protocols and guidelines to ensure the efficient and safe use of gas in construction.
He urged the group to prioritise environmental sustainability in its recommendations, adding that the group is expected to submit its report by Nov. 15.
Earlier, Mr Samson Opaliwah, the Chairman of CORBON. expressed the council’s commitment to collaborate with the group to ensure safe uptake of gas for use in houses and housing estates in Nigeria.
“I assure you of the williness of CORBON to leverage the expertise and resources at her disposal to ensure that steps are put in place for gas infrastructure in buildings and estates.
“The gas infrastructure will be safe, sustainable and world-class.
” Our collective efforts will yield clear, standardised guidelines for safe and effective gas systems in buildings, matched with a skilled workforce to meet growing demands in Nigeria,” he said. (NAN)
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