The Central Bank of Nigeria (CBN) and the Nigerian Shippers’ Council (NSC) are collaborating on implementing Disbursement Accounts (DAs) for all shipping agencies in the country. These accounts will help facilitate operational costs for their multinational principals overseas, and reduce pressure on foreign exchange in the country.
Enforcing the DAs, according to the CBN and NSC, is the right thing to do – as it is in line with Article 4 of the United Nations Conference on Trade and Development (UNCTAD) minimum standard for shipping agents.
Mr Hassan Bello, Executive Secretary of the NSC, told a recent stakeholders meeting that fully operational disbursement accounts will mean that agents stop going to the local market to source forex to settle charges incurred by the vessel locally, but, rather, they will get the forex sent directly from their overseas principals.
The timing is right for this initiative to go into action as some agents claim that Nigeria, on an annual basis, loses $4 billion for not introducing the disbursement accounts.
Charges collected by the Nigerian Ports Authority (NPA); Nigerian Maritime Safety and Administration Agency (NIMASA); ship handling costs and other local shipping costs will be covered by the DAs.
Mr A.S. Jibrin, the CBN Deputy Director, Foreign Exchange Management, Trade and Exchange Department said the meeting with stakeholders in the industry was to ensure that the DA enjoys the support of those in the industry. Jibrin said CBN is interested in implementing policies that will grow the shipping industry, which will have a positive multiplier effect on the economy. He also stressed that the decision could not have been taken without the input and participation of the industry stakeholders.
Mrs Dabney Shall-Holma, former Director, Shipping Services of NSC, noted that the shipping industry has not been contributing strongly to the GDP of the country and that with an introduction of the Disbursement Account its contribution would be higher.
Stakeholders and participants at the meeting stressed that it is wrong that shipping agents sourced forex locally for settlements of dues to NPA and NIMASA, as opposed to having such money sent from their foreign principals overseas; they urged the CBN and NSC to make the policy take effect in Nigeria as soon as possible.
Photo Credit: Business Recorder
