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Customs Disagrees With CBN Over e-Invoice Policy

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Godwin Emefiele - Investors King

Concession over the e-valuation and e-invoice policy for import and export came to a dead end on Thursday, 3rd March when the Nigeria Customs Services pointed out its reservation over the Central Bank of Nigeria (CBN) initiative.

The Apex Bank and Customs Services, as well as other stakeholders, had appeared before the House of Representatives Committees on Customs and Excise as well as Banking and Currency to address disparities arising from the introduction of the new system by the CBN.

The CBN noted that this policy is important to curb leakages and enable the government to recover more funds. However, the Customs reported that it was in violation of the law as the policy did not follow due process and would restrict trade and trading activities.

Stakeholders like the Manufacturers Association of Nigeria (MAN) stated that the policy by CBN was too hasty and was done without inputs from relevant stakeholders.

Investors King recalled that the apex bank had issued a circular that addresses a new system to kick off on February 1, 2022. However, the House had on January 27, 2022, placed it on hold as it directed the CBN to adopt a 90-day timeline for the implementation of fiscal measures to avoid destabilising effects on the economy.

According to the CBN, the prices of goods in trade transactions are sometimes manipulated by some stakeholders wishing to launder proceeds through the current financial system. The CBN has proposed that a simple way to identify such activities is by banks implementing a price check on all trade transactions, hence the need for the e-valuation and e-invoice policy.

However, while this sounds like a progressive idea from the CBN, the new policy may be in violation of the World Organization Trade Facilitation Agreement of which Nigeria is a signatory.

According to Assistant Controller General of Customs, Galadima Saidu, “Nigeria is a signatory to the WTO trade facilitation agreement. The agreements are legally binding with punitive measures that would adversely affect the Nigerian economy. The introduction of the CBN initiative is against Article 7 of the General Agreement on tariff and trade 1994 and Article 1, 2 and 6 of the WTO TFA. The agreement aims for a fair, uniform and neutral system for valuation of goods for Customs purpose and it conforms to commercial realities and which outlaws the use of arbitrary or fictitious customs values. The use of bench-marking in valuation would negate the aim of our agreement on Customs valuation and would result in delays and uncertainties. The use of benchmarking in valuation was abolished due to the dynamic nature of pricing, especially in this current time when technology is rapidly evolving,”

The House of Representative Committees has also directed the CBN and Customs to harmonize their differences on the new policy and report back on March 17, 2022, for further action.

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How Public-Private Partnership Projects Attracted $500m Investment – FG

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Nigeria investment

Public-private partnership (PPP) projects appear to be of great benefit to Nigeria, particularly within the last year.

Within this period, these projects have attracted over $500 million worth of investment, according to the Infrastructure Concession Regulatory Commission (ICRC).

The Director-General of the ICRC, Dr. Jobson Ewalefoh made this known during his courtesy visit to the Minister of Interior, Hon. Olubunmi Tunji-Ojo.

During the visit, Ewalefoh felicitated with Dr. Tunu-Ojo as the latter was honoured with the PPP Icon Award.

According to him, the $500 million in investments through various PPP projects wouldn’t have been possible without Dr. Tunji-Ojo.

To ensure compliance with statutory requirements, Ewalefoh detailed that the commission will carry out a performance audit of all PPP projects

To him: “We have mechanisms in place to begin auditing PPP agreements, not to terminate them but to optimize them for national benefit. Compliance with the insurance policy is key to protecting our national assets under these partnerships.”

Minister Ojo received praise from Dr. Ewalefoh for his efforts in revenue generation and the continuation of abandoned projects.

Ewalefoh revealed that the past year has the highest number of PPP projects presented to the Federal Executive Council (FEC), a development he attributed to the efforts of the Ministry of Interior.

On the other hand, Minister Tunji-Ojo said the government is more focused on fostering private-sector participation.

To him, this will help bridge resource gaps and create a conducive environment for investments.

Key PPP initiatives within the Ministry include the e-gate system, the Advanced Passenger Information System, and the upcoming Gap Management System, as detailed by the minister.

Minister Ojo signifies that the $500 million investment recorded in the past year is just the beginning of the many benefits of the PPP initiative.

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Makinde Moves to Make Ibadan South-West Business Hub With N41bn Ibadan Airport Upgrade 

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Business metrics - investors king
With a view to making Ibadan, the Oyo State capital the business hub of South West region, Governor Seyi Makinde has officially flagged off the N41bn upgrade of the Ibadan airport, renamed Samuel Ladoke Akintola Airport.
Speaking at the the ground-breaking ceremony for the project held at the airport premises in Ibadan, Makinde said his administration is focused on eradicating poverty in the state saying tye airport is an investment in the future.
Disclosing that the project is expected to be completed within a year, the governor noted that the project has been prioritised by his government since 2019, emphasising his commitment to transforming Ibadan into a regional business hub in the Yoruba region.
The governor stressed that the vision of his  administration is fighting poverty and not the poor, admitting that there is hardship in the country of which the project, when completed, would partly contribute in tackling.
Governor Makinde posited that the airline initiative would enhance transportation and attract businesses, tourists, and investors to the region.
For the governor, the upgrade would facilitate modern touch to the airport, of which is essential for connecting the state to the global economy and drawing economic activities to Oyo.
According to him, the airport upgrade will cost N41 billion and that it is expected to enhance air travel operations and provide a reliable transportation network for both business and leisure travelers, positioning the state for economic growth and development.
Meanwhile, the Osun State Governor, Ademola Adeleke, who was the special guest at the event, described Makinde as one who actualises development projects.
He expressed willingness to collaborate with the state to explore mutually beneficial opportunities for both states.
Governor Adeleke reiterated his assurance to completing the 12 years Osun Airport project which his administration inherited, saying it would soon become a reality.

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Nigerians Lost ₦42 Billion To POS, Mobile Phone Frauds In 3 Month – Report

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cybercrime - Investors King

The Financial Institutions Training Centre (FITC) has expressed concerns over the increasing cases of fraud in Nigeria.

This is as the institution reveals that it recorded a total of 11,532 fraud cases only in the second quarter of 2024.

In a latest report, FITC revealed that many of these frauds were linked to computers, mobile devices, and point-of-sale (POS) systems.

Also, the report revealed that these frauds did not start now.

It started in 2023 and now, like a deadly plague, it has crawled into the first quarter of 2024.

In the second quarter, the total value of fraud stood at ₦56.3 billion, a significant increase from the ₦34.8 billion reported in the first quarter of the year.

Despite efforts by financial institutions to recover the stolen funds, only ₦13.7 billion was salvaged leaving fraudsters smiling home with a whooping ₦42.6 billion.

When we talk about Mobile fraud, we mean fraud carried out via mobile apps and internet banking.

This fraud scheme accounted for 33.4% of the total cases in the report, making it the largest category.

Fraudsters who operate via POS did not disappoint.

They contributed 24.6% of the cases.

Web-based fraudsters were well represented, holding 16.9% of the total fraud incidents.

Meanwhile, via the report, FITC decried the increase in computer-based fraud as a growing concern.

The report reveals how bank branches counted their losses, with 95% of the total fraud value occurring at the branch level.

Of a truth, there have been many advancements and upgrades in technology.

Yet, fraudsters continue to excel.

We cannot help but blame this on the insiders who betrayed their organizations.

During the quarter in question, 49 employees were dismissed for their involvement in fraudulent activities.

The report also brought to light a new kind of fraud.

It is called fraud by magnitude.

Fraud by magnitude caused bank branches to lose approximately ₦54 billion.

That amount signifies a staggering 95.63% of the overall fraud amount.

Web-based fraud followed closely with losses of ₦1.2 billion (2%).

POS and mobile fraud each contributed around 1%, resulting in ₦651 million and ₦547 million losses, respectively.

On the bright side, there was a 31.8% decline in card-related fraud, but cheque and cash fraud surged significantly.

This rise in cash-related fraud reaffirms that criminals are also updating their skills as the days go by.

The big question is, what is the way forward?

For FITC the use of advanced technology, including artificial intelligence may be worth a shot.

Also, attention must be paid to proactive measures, such as bolstered security systems and continuous training of staff, as critical to reducing fraud.

As detailed in the report, fraudsters have stolen a total of ₦42.6 billion from commercial banks between April and June 2024.

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