NEPC moves to settle N330bn export grant backlog, revamp incentive scheme
The Federal Government has commenced moves to clear about N330bn in outstanding claims under the Export Expansion Grant scheme while developing a more sustainable framework for supporting Nigerian exporters.
The Nigerian Export Promotion Council is coordinating the process in collaboration with the Manufacturers Association of Nigeria Export Group and other stakeholders, following a directive by the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole.
The NEPC Executive Director/Chief Executive Officer, Nonye Ayeni, disclosed this on Thursday during a stakeholder engagement on the EEG scheme at the council’s headquarters in Abuja.
Ayeni said the meeting was convened to address outstanding liabilities, review challenges affecting the scheme and develop practical recommendations for its restructuring.
She said the government’s renewed emphasis on non-oil exports and economic diversification made it imperative to restore confidence in the export incentive framework.
According to her, the EEG has historically supported Nigerian exporters by improving the competitiveness of locally produced goods in international markets.
“At a time when the Federal Government is placing renewed emphasis on export growth, diversification of the economy and increased foreign exchange earnings, it is imperative that our export incentive framework remains credible, transparent, sustainable and responsive to the needs of exporters,” Ayeni said.
She acknowledged the existence of outstanding claims under the scheme but stressed that payments would be subject to verification and the necessary approval processes.
“Today’s engagement therefore comes at an important moment. We recognise that there are outstanding liabilities and claims requiring attention, and we also recognise the need to establish a framework that will provide greater clarity, efficiency and confidence for exporters going forward,” she said.
The outstanding obligations include previously approved claims under the Promissory Note mechanism, verified claims covering the 2017–2020 and 2021–2022 periods, as well as relevant stepped-down claims awaiting verification and approval.
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Ayeni disclosed that in May 2023, the Federal Executive Council approved a Promissory Note Programme covering approximately N269.45bn in verified EEG claims involving 195 beneficiary companies.
She added that outstanding stepped-down claims for 32 companies for the 2017–2020 period were estimated at about N60.64bn, bringing the combined outstanding obligations to approximately N330.08bn.
The Federal Ministry of Industry, Trade and Investment is working with the NEPC, Ministry of Finance, Debt Management Office, Office of the Accountant-General of the Federation, Central Bank of Nigeria, National Assembly and other relevant institutions to reconcile and advance the outstanding obligations.
Ayeni said the proposed restructuring would also address the funding architecture of the scheme.
She disclosed that President Bola Tinubu had approved the establishment of a professionally managed Trade Facilitation Fund, with 40 per cent of monthly Nigerian Export Supervision Scheme collections to be ring-fenced for strategic trade facilitation and export incentive interventions.
According to her, the arrangement would establish a clearer link between available resources, verified export performance and the government’s obligations to exporters.
The NEPC chief executive said Nigeria had recorded growth in the volume and value of non-oil exports, the number of products exported and the destinations reached.
She urged exporters to deepen local value addition, saying increased processing of raw materials into finished and semi-finished products would contribute to industrialisation, job creation and poverty reduction.
The Export Expansion Grant is a post-shipment incentive established under the Export (Incentives and Miscellaneous Provisions) Act, Cap E19, to enhance the competitiveness of Nigerian products and increase the volume and value of non-oil exports.
Under the scheme, eligible exporters receive Export Credit Certificates, which can be used to offset certain Federal Government tax obligations and other approved liabilities. Eligibility is determined by factors including local value addition, local content, employment generation and export growth.
The Federal Government had also approved N308.45bn in promissory notes for 199 exporting companies in March 2023 to address various categories of outstanding EEG claims.
Ayeni said Thursday’s stakeholder engagement would enable participants to develop practical recommendations, agree on clear action points and establish a stronger and more sustainable export incentive framework.
By PRNigeria
