New Export Inspection Regime To Curb Leakages, Lift FX Inflows, Stakeholders Say

The Central Bank of Nigeria (CBN) has appointed pre-shipment inspection agents (PIAs) and monitoring and evaluation agents (MEAs) for crude oil and gas exports under the Nigerian Export Supervision Scheme. Industry analysts and operators say the move will block revenue leakages and boost foreign exchange earnings.

Yusuf backs CBN move

Dr Muda Yusuf, chief executive officer of the Centre for the Promotion of Private Enterprise (CPPE), commended the CBN for taking the step in line with existing legislation. Yusuf alleged leakages and improper documentation had led to loss of revenue, especially in the oil and gas industry. He said the appointment of the pre-shipment agents would bring efficiency to the system and help boost foreign exchange inflow.

Quality checks and rejected exports

Kayode Farinto, former acting president of the Association of Nigerian Licensed Customs Agents (ANLCA), said pre-shipment inspection for Nigerian exports would help curb rejection of the country’s goods in international markets, boost foreign exchange earnings and protect local exporters. He said the regime would ensure export commodities meet international quality and packaging standards before leaving the country, reducing the risk of consignments being rejected at destination.

Farinto said the policy would improve the reliability of Nigerian exports, enhance the confidence of international buyers and enable the Federal Government to earn more foreign exchange from non-oil exports. He cited the rejection of Nigerian beans worth more than €5 million as an example of the losses exporters can suffer when consignments fail to meet importing countries’ requirements. He said Nigerian beans had struggled to gain access to Belgium while the country continued to receive beans from Ghana. He linked the challenge partly to packaging and other requirements Nigerian exporters must meet to compete internationally.

Farinto said inspection would involve due diligence and the issuance of clean inspection reports, giving buyers greater assurance that Nigerian goods conform to agreed specifications and international best practices. He said it would also reduce disputes between exporters and foreign buyers over quality.

He said: “They will access your goods before it gets to the port of destination. The pre-shipment inspection will rely on commercial banks in documentation, and the government will get its export earnings in dollars.”

“It is an advantage for the Federal Government because they will get money from exports. It will give us reliability in our exportation, so that cargoes will be exported and the receiver will not say that the goods did not meet specifications,” Farinto said. “It will help the government positively. It is a win-win for the Federal Government and will protect our local shippers.”

Standards and trade balance

Dr Segun Musa, maritime expert and group managing director of Widescope Logistics International, said pre-export inspection services and compliance with international standards would help Nigeria boost foreign exchange earnings and improve its balance of trade. He said the agencies would ensure Nigerian commodities meet international requirements, making them more acceptable in destination markets and expanding export opportunities.

Musa said the agencies would help exporters comply with global requirements on packaging, delivery, documentation and product quality. He said they would monitor and supervise processes to ensure Nigerian goods meet importing countries’ standards.

“Globally, there is a standard for exportation. For exports to be accepted in international business, there are minimum requirements. So if you have pre-shipment inspectors or pre-shipment inspection agencies, it helps to make your export conform with international best practices that will allow your commodities to be accepted in the destination ports,” Musa said.

He added that compliance would encourage more businesses, especially manufacturers and agro-allied operators, to participate in export activities. Musa noted that Nigeria had previously generated substantial revenue from exports, particularly in the 1970s, 1980s and early 1990s.

For the naira and Nigerian exporters, the stakeholders’ case is that cleaner documentation, fewer rejected cargoes and stronger non-oil exports would lift foreign exchange inflows.