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FG to Sanction Banks, Exporters Over Export Proceed Delay

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Federation Account Allocation Committee
  • FG to Sanction Banks, Exporters Over Export Proceed Delay

The Federal Government has said it will henceforth sanction Deposit Money Banks, exporters and other stakeholders involved in the delay of repatriation of export proceeds.

This is contained in new import-export guidelines unveiled by the Federal Government, a copy of which was obtained by our correspondent.

The sanctions were contained in the 14-page Export Guidelines for Non-Oil Exports, 14-page Export Guidelines for Oil and Gas Exports, and 18-page Import Guidelines.

As a result, the CBN will begin to sanction banks for delay in remitting export proceeds made by exporters to the relevant Central Bank of Nigeria’s accounts.

Also, any late or non-rendition of returns of export proceeds to the CBN by banks will attract relevant sanctions.

Exporters and importers are also liable to heavy sanctions for any delay in repatriating exports proceeds and payment of certain levies, according to the guidelines.

The guidelines published by the Ministry of Finance, and signed by the Minister of Finance, Mrs. Kemi Adeosun, indicated that non-compliance with the requirements or provisions of the guidelines would attract various sanctions, including payment of heavy fines and termination of contract of service.

Adeosun said the sanctions were introduced in the new guidelines to ensure compliance with the regulations.

According to her, the sanctions introduced with respect to export are to ensure timely payment of the Nigeria Export Supervision Scheme levy and repatriation of export proceeds within the prescribed period.

She said it was also meat to forestall sharp practices; as well as compel government appointed pre-shipment inspection agents to ensure timely scheduling of inspection and issuance of the Clean Certificate of Inspection; regular monthly reporting, confirmation of proper documentation of export by the exporter and forestall exportation of substandard goods from Nigeria.

The sanctions stated in the guidelines read in part, “Non-compliance with the requirements or provisions of these guidelines will attract the following sanctions: No export permit shall be processed by the Department of Petroleum Resources for any exporter that defaults in filing the Nigeria Export Proceeds form and or in the payment of the NESS levy.

“Non-payment of the NESS levy within 30 days of the shipment date for oil and gas exports shall attract e penalty of 25 per cent of the outstanding NESS levy.

“Any exporter that defaults in the repatriation of export proceeds within the time limit specified in the Central Bank of Nigeria’s Foreign Exchange Manual shall be liable to a penalty of one per cent of the outstanding export proceeds.

“Any violation of these guidelines by banks, including but not limited to late submission of Nigeria Export Proceeds forms received from exporters to the PIAs; late/non-remittance of NESS fees paid by exporters to the CBN; late submission of NESS fee receipts to the PIAs and exporters; and late/non-rendition of returns of export proceeds shall attract appropriate sanctions by the CBN.”

Adesoun on Thursday said the Federal Government would commence the implementation of the revised import and export guidelines on January 1, 2018.

She said this in Lagos during a stakeholders’ sensitisation workshop on the revised export and import guidelines.

The workshop was organised by the Finance ministry in collaboration with the technical committees on the Nigeria Export Supervision Scheme and the Comprehensive Import Supervision Scheme.

The minister said the guidelines were sent to the relevant Ministries, Departments and Agencies in April for onward transmission to relevant stakeholders.

She added that they were also downloaded onto the ministry’s website for the information of the trading public.

Adeosun said, “After due consultation with the relevant key stakeholder MDAs, the effective date for full implementation of the guidelines was agreed upon, taking into account the need to give allowance for imports already prepared for shipment into Nigeria. In this note, I wish to announce that the export and import guidelines will be fully implemented with effect from January 1, 2018. However, goods already loaded for shipment to Nigeria prior to this date will not be affected by the policy.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Electricity Consumers Get 611,231 Meters Under MAP Scheme

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power project

Electricity Consumers Get 611,231 Meters Under MAP Scheme

A total of 611,231 meters have been deployed as at January 31, 2021 under the Meter Asset Provider initiative since its full operation despite the COVID-19 pandemic and other extraneous factors, the Nigerian Electricity Regulatory Commission has said.

NERC disclosed this in a consultation paper on the review of the MAP Regulations.

The proposed review of the MAP scheme is coming nearly four months after the Federal Government launched a new initiative called National Mass Metering Programme aimed at distributing six million meters to consumers free of charge.

“The existence of a huge metering gap and the need to ensure successful implementation of the MYTO 2020 Service-Based Tariff resulted in the approval of the NMMP, a policy of the Federal Government anchored on the provision of long-term low interest financing to the Discos,” NERC said.

The commission had in March 2018 approved the MAP Regulations with the aim of fast-tracking the closure of the metering gap in the sector through the engagement of third-party investors (called meter asset providers) for the financing, procurement, supply, installation and maintenance of meters.

It set a target of providing meters to all customers within three years, and directed the Discos and the approved MAPs to commence the rollout of meters not later than May 1, 2019.

But in February 2020, NERC said several constraints, including changes in fiscal policy and the limited availability of long-term funding, had led to limited success in meter rollout.

NERC, in the consultation paper, highlighted three proposed options for metering implementation going forward.

The first option is to allow the implementation of both the NMMP and MAP metering frameworks to run concurrently; the second is to continue with the current MAP framework with meters procured under the NMMP supplied only through MAPs (by being off-takers from the local manufacturers/assemblers).

The third option is to wind down the MAP framework and allow the Discos to procure meters directly from local manufacturers/assemblers (or as procured by the World Bank), and enter into new contracts for the installation and maintenance of such meters.

“Customers who choose not to wait to receive meters based on the deployment schedule of the NMMP shall continue to have the option of making upfront payments for meters which will be installed within a maximum period of 10 working days,” NERC said.

The regulator said such customers would be refunded by the Discos through energy credits, adding that there would be no option for meter acquisition through the payment of a monthly meter service charge.

“Where meters have already been deployed under the meter service charge option, Discos shall make one-off repayment to affected customers and associated MAPs. Such meters shall be recognised in the rate base of the Discos,” it added.

NERC urged stakeholders to provide comments, objections, and representations on the proposed amendments within 21 days of the publication of the consultation paper.

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Economy

Nigeria’s Economy Moving in Right Direction but Slow – Amina Mohammed

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Banana Island

Nigeria’s Economy Moving in Right Direction but Slow – Amina Mohammed

Nigeria is moving in the right direction economically but its movement is not fast, the United Nations stated on Thursday.

Deputy Secretary-General of the United Nations, Amina Mohammed, said this during a meeting at the headquarters of the Federal Ministry of Industry, Trade and Investment in Abuja.

She said the challenges in Nigeria were huge, its population large but described the country’s economy as great with lots of opportunities.

The UN scribe stated that after traveling by train and through various roads in the Northern parts of Nigeria, she discovered that the roads were motorable, although there were ongoing repairs on some of them.

Mohammed said, “This is a country that is diverse in nature, ethnicity, religious backgrounds and opportunities. But these are its strengths, not weaknesses.

“And I think the narrative for Nigeria has to change to one that is very much the reality.”

Speaking on her trips across parts of Nigeria, she said, “What I saw along the way is really a country that is growing, that is moving in the right direction economically. Is it fast enough? No. Is it in the right direction? Yes it is.

“And the challenges still remain with security, our social cohesion and social contract between government and the people. But I know that people are working on these issues.”

She said the UN recognised the reforms in Nigeria and other nations, adding that the common global agenda was the Sustainable Development Goals.

Mohammad commended Nigeria’s quick response to the COVID-19 pandemic, as she expressed hope that the arrival of vaccines would be the beginning of the end of COVID-19.

On his part, the Minister of Industry, Trade and Investment, Adeniyi Adebayo, told his guest that the Federal Government was working hard to make Nigeria the entrepreneurial hub of Africa.

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Economy

N10.7tn Spent on Fuel Subsidy in 10 Years – MOMAN

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petrol Oil

N10.7tn Spent on Fuel Subsidy in 10 Years – MOMAN

Nigeria spent a total of N10.7tn on fuel subsidy in the last 10 years, the Chairman, Major Oil Marketers Association of Nigeria, Mr Adetunji Oyebanji, has said.

Oyebanji, who was the guest speaker at the 18th Aret Adams Lecture on Thursday, said N750bn was spent on subsidy in 2019.

He highlighted the need for a transition to a market-driven environment through policy-backed legislative and commercial frameworks, enabling the sustainability of the downstream petroleum sector.

“Total deregulation is more than just the removal of price subsidies; it is aimed at improving business operations, increasing the investments in the oil and gas sector value chain, resulting in the growth in the nation’s downstream petroleum sector as a whole,” he said.

The managing director of 11 Plc (formerly Mobil Oil Nigeria Plc) said steps had been taken, “but larger and faster leaps are now required.”

According to him, deregulation requires the creation of a competitive market environment, and will guarantee the supply of products at commercial and market prices.

“It requires unrestricted and profitable investments in infrastructure, earning reasonable returns to investors. It requires a strong regulator to enable transparency and fair competition among players, and not to regulate prices,” Oyebanji said.

He noted that MOMAN had recently called for a national debate by stakeholders to share pragmatic and realistic initiatives to ease the impact of the subsidy removal on society – especially on the most vulnerable.

He said, “A shift from crude oil production to crude oil full value realisation through deliberate investment in domestic refining and refined products distribution, creates the opportunity to transform the dynamics of the downstream sector from one of ‘net importer’ to one of ‘net exporter’, spurring the growth of the Nigerian economy.

“Effective reforms and regulations are key drivers for the growth within the refining sector. Non-functional refineries cost Nigeria over $13bn in 2019. If the NNPC refineries were operating at optimal capacity, Nigeria would have imported only 40 per cent of what it consumed in 2019.”

Full deregulation of the downstream sector remains the most glaring boost to potential investors in this space, according to Oyebanji.

He said, “As crude oil prices will fluctuate depending on the prevailing exchange rates, it will be astute to trade in naira to avoid inevitable price swings.

“There needs to be a balance between ensuring the sustainable growth of the crude oil value chain (upstream through downstream) and providing value for the Nigerian consumer and the Nigerian economy.”

He said the philosophy should be for the government to put the legislative and commercial framework in place and let the market develop by itself.

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