NEPC's Push for Better Export Incentives

For years, many Nigerian exporters have waited for government incentives to help them compete better in global markets. While they fulfilled export orders, invested in their businesses, and explored new markets, delays in incentive payments and unclear policies made them lose faith in the system.

The Federal Government’s new push to address the ₦330 billion Export Expansion Grant (EEG) backlog is worth noting. Besides clearing unpaid obligations, it offers a chance to rebuild trust in this crucial support system and set up a more reliable incentive plan.

At a recent meeting in Abuja, Mrs Nonye Ayeni, the Executive Director and Chief Executive Officer of the Nigerian Export Promotion Council (NEPC), shared that the Federal Government is working with the Manufacturers Association of Nigeria Export Group (MANEG) and others to settle the outstanding EEG claims and create a sustainable funding model for the program.

NEPC reports that about ₦269.45 billion is tied to verified EEG claims from 195 beneficiary companies under the Promissory Note Programme approved by the Federal Executive Council in May 2023. Additionally, ₦60.64 billion is linked to stepped-down claims from 32 companies covering the years 2017 to 2020. This brings the total owed to around ₦330.08 billion.

For these companies, the problem is more than just the money owed. It is about the uncertainty.

An exporter who has spent money on raw materials, produced goods, fulfilled contracts, and paid shipping costs cannot treat an approved government incentive as just a promise. Delays hurt cash flow, limit growth, cut jobs, and stop further investments.

Fixing the backlog is important, but preventing it from happening again is even more crucial.

The Export Expansion Grant was set up to help Nigerian exporters by promoting non-oil exports through Export Credit Certificates. These certificates can be used to reduce certain federal tax obligations.

The goal is simple: help Nigerian businesses compete in global markets.

The current reforms aim not just to clear old debts but also to fix issues in the program’s funding. This change could be more important than just settling existing claims.

Paying what is owed without addressing the root causes of the backlog would only delay another problem.

Nigeria needs an export incentive system based on clear eligibility rules, efficient verification, reliable payment timelines, and sustainable funding.

These changes are becoming more urgent as Nigeria’s non-oil export sector keeps growing.

In 2025, Nigeria reported $6.1 billion in non-oil exports, an 11.5 percent increase from $5.46 billion in 2024. Export volumes topped eight million metric tonnes, with 281 products reaching 120 countries.

Cocoa beans brought in about $1.99 billion, while urea added $1.29 billion. Cashew nuts, sesame seeds, and other agricultural products also showed solid export profits.

These numbers prove that there is global demand for Nigerian products.

The challenge is creating an environment that allows exporters to compete effectively.

Manufacturers and exporters still face high production costs, erratic electricity, expensive logistics, limited access to affordable finance, certification issues, regulatory delays, and unstable international markets.

Though export incentives cannot solve all these problems, they should at least create a reliable policy environment that businesses can count on.

One of the most hopeful parts of the proposed changes is the creation of a professionally managed Trade Facilitation Fund.

Mrs Ayeni mentioned that President Bola Ahmed Tinubu has approved setting aside 40 percent of monthly collections from the Nigerian Export Supervision Scheme to support strategic trade initiatives and export incentive programs.

This plan has a lot of potential.

But its success relies entirely on good governance.

The Fund needs clear rules on how collections, allocations, and payments will work, along with transparency and public accountability. Exporters must know how resources are managed, and government bodies should regularly share measurable reports about the Fund’s impact.

The EEG backlog teaches an important lesson.

Government incentives only matter when businesses can trust when and how they will receive them.

An exporter looking to invest in a processing plant or expand into new markets needs to make long-term financial plans. Uncertain incentive payments raise business risks and hurt the competitiveness the program aims to build.

The involvement of MANEG in the reform process is also key because export competitiveness starts with manufacturing.

Businesses see government through one business environment, not separate ministries or agencies.

When electricity is costly, logistics are slow, certification takes time, customs procedures are tough, and financing is dear, even good export incentives struggle to cover those gaps.

The restructuring of the EEG should be part of broader reforms to boost trade facilitation, production efficiency, and regulatory coordination.

In this light, initiatives like the Federal Government’s National Single Window are very relevant. Exporters need systems that cut down duplication, speed up processing, and simplify compliance across different government agencies.

Moreover, Nigeria must keep shifting from exporting raw materials to higher-value products.

Cocoa, cashew, sesame, leather, and many other products offer huge chances for local processing, packaging, branding, and manufacturing before export. Each added stage of value creates jobs, boosts local industries, and increases foreign earnings.

A reformed incentives system should reward real results like value addition, local content growth, job creation, export diversification, and international competitiveness, not just higher export numbers.

Beyond pushing Nigerian products abroad, NEPC is showing its importance as a body that can connect exporters, manufacturers, regulators, and policymakers to tackle the challenges facing the non-oil export sector.

Successfully handling the EEG backlog will need ongoing teamwork among the Federal Ministry of Industry, Trade and Investment, NEPC, the Federal Ministry of Finance, the Debt Management Office, the Office of the Accountant-General of the Federation, the Central Bank of Nigeria, the National Assembly, and other relevant bodies.

But coordination must achieve more than just meetings and reports.

It needs to bring about faster verification, clear processing, reliable payment schedules, and digital systems that allow exporters to track their applications from submission to payment.

In the end, the success of the reforms should not only be measured by how much of the ₦330 billion backlog is cleared. It should also consider whether future claims are processed quickly, payment timelines are met, and trust is rebuilt.

Nigeria has shown the great potential of its non-oil export economy.

The record $6.1 billion in 2025 shows that Nigerian products can compete well in global markets.

Maintaining this growth requires more than just good export numbers. It needs trustworthy policies, reliable institutions, solid funding, and continuous engagement with the private sector.

Clearing old debts is a vital first step.

Building a strong export economy means ensuring that future commitments are clear, well-funded, and consistently met.

Only then can Nigerian exporters confidently plan production, find international buyers, secure certifications, fulfill contracts, and trust that government support will come when promised.

That is the key difference between just announcing an export incentive and actually building a truly competitive export economy.