TheCable

The Centre for the Promotion of Private Enterprise (CPPE) says the newly introduced electronic invoice (e-invoice) will worsen the country’s trade transactions process.

Last month, the CBN introduced the electronic invoice (e-invoice) and electronic evaluator (e-evaluator) to achieve accurate value from import and export items in and out of the country.

An e-invoice is a digitally-delivered invoice issued, transmitted, received, processed, and stored in a specific standardised format.

But the house of representatives asked the CBN to suspend the planned implementation, saying it does not provide enough time for stakeholders’ engagement.

In a statement by Mada Yusuf, chief executive officer of CPPE, the e-invoice and e-valuator policy would only aggravate an already defective international trade transactions process.

“We recall that only last October, the Director-General of the World Trade Organization, Dr[Mrs.] Ngozi Okonjo-Iweala expressed worry over the high trade cost in Nigeria, which she said was an equivalent of 306% tariff, which is above the African average. She stated this while addressing the Mid-term Ministerial Performance review of the federal government,” the statement reads.  

“Her assertion summarises the harrowing experience of Nigerian investors in the international trade process. 

“There are issues of overlapping regulation, excessive documentation, weak application of technology, physical examination of cargo, extortion, inadequate cargo handling equipment, stifling bureaucracy, difficult transportation logistics, challenges of access to the ports and weak dispute resolution system. 

“We should therefore be seeking to alleviate the pains of investors in the economy, not exacerbate it.

“The E-invoice and E evaluator policy will only worsen an already bad international trade transactions process.”

According to Yusuf, the policy would increase transaction cost, entrench red tape, increase uncertainty, escalate business disruption, weaken investors’ confidence and heighten corruption risk.  

Furthermore, he noted that there is a strong correlation between red tape and corruption. 

He said the increasing incursion of the CBN into the trade policy space is “an aberration in our economic management system and a serious cause for concern to the business community”. 

The CEO noted that issues of import valuation and classification are statutory functions of the Nigeria Customs Service, with the finance ministry as the supervising organ. 

“The decision of the CBN to now undertake valuation and product price benchmarking of imports and exports is a duplication of the statutory responsibility of the Nigeria Customs Service. It will create an additional regulatory compliance burden and costs for the business community,” he added. 

“We, therefore, submit that the E-evaluator and E-invoicing initiatives be rescinded by the CBN. There is no compelling justification for their introduction in the first place. The CBN could collaborate with the Nigeria Customs to address any gaps in the valuation processes, rather set up a parallel institutional framework.”

The CPPE commended the prompt intervention of the house of representatives on the matter.