‘How CBN can enhance exports’

The Central Bank of Nigeria (CBN) has beencalled upon to come up with a policy framework aimed at protecting Nigerian traders involved in export trades in order to curtail capital flight from the nation’s economy.

The secretary, Cargo Defence Fund (CDF), Azuka Ogo, said this while delivering a lecture on bills of lading and cargo claims in maritime trades, at the occasion of the third practical maritime dispute resolution seminar in Lagos .

According to her, the CBN’s policy should secure appropriate payment methods for small and medium shippers exporting goods to other countries of the world, stressing that the problems of small exporters include deforestation and dominance of trade by foreign owned Nigerian companies operating in the maritime industry.

Ogo said CBN should do something to ensure that small and medium shippers in the country benefit from NEXIM’s risk bearing facilities to stay afloat in business. “CBN should support in the enlightenment of secure methods of payments for Nigeria ’s import and export trades as well as re-examination of transaction processes for guidance on most secure options of payment.

There should be dialogue between the CDF, CBN and NEXIM bank on these developments. There should also be a way forward to prevent future occurrences by re-examination of secure payment methods for Nigeria ’s export”, she pointed out.

Ogo went on: “Some exporters of charcoals and shea-butter to Germany , Netherlands and Poland experienced difficulties such as supply of various quantities of hardwood charcoal without payment after delivery.

Supply of various quantities of charcoal and other commodities with short payment made after deliver. Bankruptcy claim by one of the buyers after taking delivery in Netherlands and information that the same company was trading with a new name. The action by CDF include examination of the merit of the claims based on national and international laws and the determination of the willingness of trading to partners to agree to mediation. 10 cases in Germany consolidated for action, five cases in the Netherlands where the company had declared bankruptcy and three other cases in Poland.

“On the general trading issues, CDF realised that only Nigerians purchase dried stockfish heads from Iceland and the importers are compelled to take out an insurance policy in Iceland to ensure settlement. From information available from Iceland , about 100 containers are shipped every month from Iceland and about 900 containers every year. CDF recommended that there must be a way of knowing the condition of the container and stockfish prior to shipment to ensure quality control. Quality control prior to shipment and certification are important.

The determination of seaworthiness of containers prior to shipment is very vital and the code for shipments must conform to that which is fit for human consumption. Normal shipment and transhipment must occur within four to six weeks to ensure that consignment remain fit for human consumption. The use of ventilated containers was suggested for consideration and the need for issuing back to back bill of lading”.