e-invoicing Launched by CBN will worsen Nigeria international trade transactions process- Muda Yusuf

The recent e-invoicing policy that was launched by the Central Bank of Nigeria will worsen Nigeria’s already bad international trade transactions process, increase transaction cost, entrench red tape, increase uncertainty, escalate business disruption, weaken investors’ confidence and heighten corruption risk.

This was made known in a statement sent to Nairametrics by Dr Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise and former President of the LCCI.

He warned that there is no compelling justification for their introduction in the first place and urged the CBN to collaborate with the Nigeria Customs to address any gaps in the valuation processes.

The CPPE warned that last October, 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.

Her assertion summarizes 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 to it,” they warned.

They added that the E-invoice and E-evaluator policy will only worsen an already bad international trade transactions process.

“The policy will increase transaction cost, entrench red tape, increase uncertainty, escalate business disruption, weaken investors’ confidence and heighten corruption risk. The truth is that there is a strong correlation between red tape and corruption” they said.

They also warned that the increasing incursion of the CBN into the trade policy space is an aberration in Nigeria’s economic management system and a serious cause for concern to the business community, citing Issues of import valuation and classification that are statutory functions of the Nigeria Customs Service, with the Finance Ministry as the supervising organ.