• Thursday, March 28, 2024
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FG commences issuance of promissory note worth over N195bn to settle EEG liabilities

Olusegun Awolowo

Following series of delays that have plagued the release of the Export Expansion Grant (EEG) ,the Federal Government is to issue Promissory Note worth N195.08bn to 270 companies to settle part of the Export Expansion Grant liabilities to exporters.

The amount is expected to support exports and appreaciate the non-oil sector as the government seeks diverse ways of supporting exporters in its bid to diversify the economy.

Speaking during a stakeholders’ forum on the framework for the issuance of the promissory notes for the settlement of the outstanding EEG, the Chief Executive Officer, Nigerian Export Promotion Council, Olusegun Awolowo, said that the government is now set to clear the EEG arrears to exporters from 2007 to 2016.

He said the reactivation of the EEG scheme, after its technical suspension in 2014, and settlement of the outstanding claims owed exporters was in line with the Federal Government’s focus on diversification of the economy through non-oil exports.

He said, “The assent in January 2019 by the National Assembly of the first batch of the request and the subsequent directives by the Minister of Finance to the Debt Management Office for the settlement of the EEG covering backlogs of ten years for 270 companies with a total value of N195.08bn will bring succour to the export sector.

“We also have positive signal that the National Assembly will soon pass the second batch of the approval for the remaining 39 companies with a total value of about N126bn only.

“It is our fervent believe that the settlement of this inherited debt by the Federal Government will pave the way for the revival of the non oil export sector of the economy.

“It will in no small measure enable the affected companies settle their debts with banks and other financial institutions, inject funds for further export activities, generate more foreign exchange as well as employment for the teeming youth of our country.”

On export earnings of Nigeria, Awolowo said that the country’s export earnings for 2017 and 2018 experienced an upward trend.

For instance, he said there was a growth of 48.43 per cent from $1.2bn in 2016 to $1.78bn before hitting $2.27bn in 2018.

He expressed optimism that exports earnings for the 2019 fiscal period would grow by about 40 per cent in view of the settlement of the exporters’ debt through Promissory Note programme.

He said in line with the government’s policy on ease of doing business, the council has developed an online platform for the processing and management of the EEG claims.

The online platform, according to him, would provide opportunity for all stakeholders to submit, review and access information regarding the processing of claims.

He said the platform which was developed by PriceWaterHouse Coopers would be fully deployed before middle of May this year.

 

‎HARRISON EDEH, ABUJA