The CBN E-Valuation And E-Invoicing Guidelines, Statement on Status of Chief Compliance Officers

The CBN Guidelines On The Introduction of E-Evaluation & E-Invoicing For Import & Export in Nigeria.

The Central Bank of Nigeria (CBN) on the 21st of January,2022 released a new set of guidelines addressed to all authorized dealers licensed by it and the general public pursuant to a CBN circular dated the 5th of August, 2020.

This article will be focused on the provision of these guidelines on the introduction by the CBN of the E-Valuator & E-Invoice which are replacements for hardcopy final invoices as part of the documentation required for all import and export transactions.

These provisions are as follows :-

– From the 1st of February,2022, all import and export operations will require the submission of an electronic invoice (E-Invoice) authenticated by authorized dealer banks on the Nigerian Single Window Portal – Trade Monitoring System (TRMS).

– The guidelines are aimed mainly at the realization of accurate value from the import and export of items in & out of Nigeria.

– The system would operate on a global price verification mechanism guided by a benchmark price. The benchmark price is the actual market price obtainable at the time of invoicing in, in that market where the goods are traded.

– Imports and exports with unit prices that are more than 2.5% of the verified global checkmate prices would be queried and will not be allowed got successful completion of Form M or Form NXP as the case may be.

– Accordingly the use of E-Invoicing shall subject to the following guidelines relating to the obligations of importers and suppliers for their operations as stated below :-

a). An importer/exporter of goods into Nigeria shall ensure that the purchase/sale contract with a foreign supplier/buyer stipulates compliance with the obligations set out in the guidelines and the seller’s invoice must be submitted in electronic format and authenticated by an Authorized Dealer Bank(ADB) as part of required documentation; 

b). No importer/exporter may effect payment to the credit of any foreign supplier unless the electronic invoice has been authenticated by ADBs presented together with other relevant documents for payment;

c). The content of the E-Invoice authenticated by ADBs is only advisory for the Nigerian Customs Service;

d). A supplier/buyer of goods and services for Import/Export operations into or out of Nigeria is required to register on a dedicated electronic portal provided by the CBN and operated by its agent service providers as in the operational manual for Form M & Form NXP;

350. e) An annual subscription fee of $350.00 is charged for the authentication of suppliers on the TRMS system.

Exempted Import/Export Operations

– Individual invoices with a value of less than $10,000.00 or its equivalent in another currency, except where suppliers have an annual cumulative invoicing value equal to or above $500,000.00 or its equivalent in another currency, then they shall submit E-Invoices for all their operations regardless of the individual value of an invoice.

– Import & Export transactions made by all security agencies in the country.

– Supplies to diplomatic and consular missions .

– Supplies to international agencies dependent on the UN.

– Donations from foreign governments or individual organizations to foundations, charities and recognized humanitarian organizations.

– Goods supplied directly by a foreign government.

The CBN Statement On The Status of Chief Compliance Officers (CCOs)

The Central Bank of Nigeria(CBN) on the 9th of October 2020 released a statement pursuant to a CBN circular dated the 28th of September 2016 on the appointment of Executive Compliance Officers (ECOs) & Chief Compliance Officers (CCOs) of deposit money banks. 

Upon due considerations and presentations by stakeholders on the size, structure, operations & dynamics of classes of operators in various banking and financial sectors, the CBN reviewed the requirements for the appointment of CCOs.

Consequently, Merchant Banks and Regional banks (Commercial & Specialized) are to appoint CCOs on a grade not below that of an Assistant General Manager(AGM).

CCOs are however required to report directly to the ECOs of FIs(Financial Institutions) who have some responsibility for compliance matters in the bank.

The requirements and responsibilities of ECOs as stated in the 2016 CBN circular remain unchanged.