Export boost as FG finally considers inclusion of EEG in budget

 

After months of dilly-dallying on the Export Expansion Grant (EEG), the Economic Management Team of the Federal Government is finally considering including the scheme in annual budgets, Real Sector Watch has exclusively gathered.

The EEG Scheme was introduced by the Federal Government in 1986 to improve the competitiveness of Nigerian products and commodities. The scheme operated with the Negotiable Duty Credit Certificates (NDDCs), which were documents that served as cost reduction covers for exporters at the Nigeria Customs. The essence of the scheme was to ensure the country earns more foreign exchange through the non-oil export sector.

The scheme was, however, suspended in 2013 by the Goodluck Jonathan-led administration. Before the suspension, over N110 billion was owed exporters through the NDCCs.

The government of Muhammadu Buhari came into power but refused to reinstate it on the allegation that the scheme was grossly abused.

However, Real Sector Watch obtained documents showing that the Economic Management Committee of the Buhari-led administration has finally approved recommendations made by the Inter-ministerial Committee set up for the scheme. The committee presented its recommendations to the Economic Team on October 17, one of which was the inclusion of the scheme in 2017 or 2018 budget.

 The document says that there will be payment of the approved liability on the scheme for unused NDCCs which are either in the custody of exporters or awaiting issuance in the Federal Ministry of Finance, after the conduct of an audit to verify the accuracy and validity of the amounts due.  

The document, which was a presentation made by Okechukwu Enalamah, minister of industry, trade and investment, also says that the EEG could be included in the annual budget to promote policy consistency, transparency and stakeholder buy-in.

Enalamah said in the presentation that there would be  incorporation of technology and the use of scanners into Nigeria’s export procedures to promote transparency and improve confidence in the export documentation generated.

The minister said there would be “change in the name of the instrument issued from Negotiable Duty Credit Certificates (NDCC) to Export Credit Certificate (ECC) to reflect the changes in the characteristic of the revised Scheme.”

“The Economic Management Team agreed that the objective of the scheme, which is to expand the volume and value of Nigeria’s exports, diversify export products and market coverage and improve global competiveness, is still very relevant and in alignment with this administration’s economic agenda. It also agreed that the EEG, if revised and administered in a purposeful and transparent manner, can truly act as a catalyst for export growth and create wealth for small and middle scale enterprises which form a significant proportion of the firms involved in the export of commodities,” the minister said.