The Manufacturers Association of Nigeria (MAN) has urged the Central Bank of Nigeria (CBN) to extend implementation of the E-invoice and E-evaluator initiatives by 90 days to accommodate constructive inputs of stakeholders.
Mr Segun Ajayi-Kadir, Director General, MAN, said in a report on Sunday in Lagos.
The House of Representatives had already asked the CBN to immediately suspend its implementation to allow adequate sensitisation on the workability of the policy in all major ports of entry across the country.
Ajayi-Kadir said the call was pertinent particularly for those classes of manufacturers and businesses that would be negatively affected by the development.
He noted that the 11 days grace for implementation was rather hasty, as the circular on monetary or fiscal guidelines required adequate adjustment time.
This, the MAN DG said was more so when it involved that many operators would have opened Form M and concluded deals for international transactions; where a minimum of 90 days allowance of time is normally required.
“Straightaway, one must say that transactions already embarked upon before the commencement of the guidelines should be exempted and the commencement date should be extended by a minimum of 90 days,” he said.
Ajayi-Kadir added that the new regulation which stated that any Form M bearing a unit price in excess of 2.5 per cent of the verified global checkmate price would not be approved was a concern to manufacturers.
He said that it checkmated the opportunity of 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? He asked.
“Clearly, this aspect of the policy will lead to several challenges on valuation down the line including a floodgate of valuation issues with Nigeria Customs Service (NCS),” he said.
The manufacturing guru also called for clarification on paragraph D of the guidelines; wherein the CBN directs that “the content of the electronic invoice authenticated by Authorized Dealer Banks is only advisory for the Nigeria Customs Service (NCS)”.
This, he said, meant that the NCS may vary it, probably uplift the Free On Board (FOB) when issuing the Pre Arrival Assessment Report (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 Nigeria Customs Service.
“This is in addition to a situation that may arise where the CBN forces such importer or manufacturer to reduce its price if it is considered not in conformity with the benchmark pricing.
“In paragraph H, the CBN directs supplier and buyers to transmit their authenticated invoices through the CBN appointed service provider to the Nigeria single-window portal.
“While MAN considers this measure as a step to check perceived malpractices, we believed that the essence of single window policy is being diminished and this could introduce unnecessary bureaucracy with attendant multiple charges.
“Finally, the annual subscription fee charge 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,” he said.
He called for a clear, step-by-step process of transaction under the guidelines to ensure that government does not inadvertently create a regime of chaos that will decelerate activities in the manufacturing sector.
