The Federal Government has begun processes to clear the backlog of Export Expansion Grant (EEG) payments and reform the scheme for sustainability.
The Minister of Industry, Trade and Investment, Jumoke Oduwole, said this at a stakeholders engagement on the EEG scheme in Abuja on Thursday.
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Mrs Oduwole said the scheme had faced difficulties, with payments outstanding since 2020, leaving the current administration with significant payment backlogs.
She said the backlog required validation and verification of claims submitted by exporters, involving several government agencies.
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According to her, the Federal Ministry of Finance, Central Bank of Nigeria (CBN) and other relevant agencies are involved in the process.
The minister said the Federal Ministry of Industry, Trade and Investment anchored the EEG as an export promotion tool under the Nigerian Export Promotion Council (NEPC).
She said the government was pursuing two pathways: clearing outstanding payments and restructuring the scheme to make it sustainable.
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The minister said the reforms aligned with President Bola Tinubu’s Renewed Hope Agenda and the goal of building a one trillion dollar economy.
She said the agenda prioritised economic diversification and non-oil exports as part of efforts to strengthen Nigeria’s productive capacity.
Mrs Oduwole said Nigerian non-oil exporters had recorded growth in both volume and value over the past two years.
She said the government would continue to incentivise exporters sustainably because the sector could create jobs and expand the global market for Nigerian products.
The minister said the government had also been working to improve market access through trade agreements, including the African Continental Free Trade Area (AfCFTA).
She said payments already approved in May 2023 would be transmitted to the 10th National Assembly for consideration and approval.
Mrs Oduwole explained that the National Assembly would carry out its duties legislative before the Federal Government could issue the necessary instruments for payment.
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“President Tinubu has also approved earmarking 40 per cent of the NEST Fund toward a trade facilitation fund.
“The independently managed fund will provide a sustainable pathway for settling EEG obligations and supporting trade facilitation.
“Once the National Assembly approves the payments, government can issue promissory notes through the Debt Management Office to clear the backlog.
“The government will thereafter establish a reformed framework for export expansion incentives,” she said.
According to Mrs Oduwole, the current EEG structure is unsustainable because it is too expensive and has no closing date.
She said the reformed scheme would discourage the export of raw materials and place greater emphasis on value-added and finished products.
The minister said the scheme would also support emerging businesses and target sectors requiring assistance to improve their export competitiveness.
Mrs Oduwole said the government had engaged stakeholders, including the NEPC and the Manufacturers Association of Nigeria Export Group, to develop a sustainable way forward for the scheme.
(NAN)
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