FG takes steps to clear export grant payments and improve EEG scheme

The Federal Government has started working to clear the outstanding payments of the Export Expansion Grant (EEG) and improve the scheme for the future.

The Minister of Industry, Trade and Investment, Jumoke Oduwole, announced this during a meeting with stakeholders about the EEG scheme in Abuja on Thursday.

Mrs Oduwole mentioned that the scheme has faced many challenges, with payments not made since 2020, which has left the present administration with a large backlog of payments.

She explained that clearing this backlog needs validation and verification of claims from exporters, which involves several government agencies.

According to her, the Federal Ministry of Finance, the Central Bank of Nigeria (CBN), and other relevant agencies are part of this process.

The minister pointed out that the EEG is an export promotion tool managed by the Federal Ministry of Industry, Trade and Investment under the Nigerian Export Promotion Council (NEPC).

She said the government is focusing on two main areas: settling outstanding payments and restructuring the scheme to ensure it lasts.

These reforms are in line with President Bola Tinubu’s Renewed Hope Agenda and the aim to build a one trillion dollar economy.

The agenda focuses on diversifying the economy and promoting non-oil exports to improve Nigeria’s productive capacity.

Mrs Oduwole noted that non-oil exporters in Nigeria have seen growth in both the volume and value of their exports over the last two years.

She assured that the government would keep supporting exporters sustainably since this sector can create jobs and expand the global market for Nigerian goods.

The minister also mentioned that the government is working to enhance market access through trade agreements, including the African Continental Free Trade Area (AfCFTA).

She stated that payments approved in May 2023 would go to the 10th National Assembly for their review and approval.

Mrs Oduwole explained that the National Assembly has to do its part before the Federal Government can move forward with the required payment processes.

“President Tinubu has also agreed to set aside 40 percent of the NEST Fund for a trade facilitation fund.

“This fund, which will be managed independently, will create a lasting solution for paying EEG obligations and helping with trade facilitation.

“Once the National Assembly gives the green light on the payments, the government can issue promissory notes through the Debt Management Office to settle the backlog.

“After that, the government will put in place a new framework for export expansion incentives,” she said.

Mrs Oduwole pointed out that the current EEG setup is not sustainable because it is too costly and has no end date.

She mentioned that the new scheme will discourage exporting raw materials and focus more on value-added and finished products.

The minister said the scheme will also assist new businesses and target sectors that need help to boost their export competitiveness.

Mrs Oduwole confirmed that the government has been working with stakeholders, including the NEPC and the Manufacturers Association of Nigeria Export Group, to find a sustainable way forward for the scheme.