The Executive Secretary, the Organized Private Sector Exporters Association (OPEXA), Jayeola Olarewaju, has lauded the Federal Government for its policies to diversify the economy, especially for its commitment to sustain the Export Expansion Grant (EEG) scheme since 2017.
Olarewaju said the scheme had helped to foster transparency and formalise the export channels as goods undergo pre-shipment inspection by agencies appointed by the government. The forex proceeds were being repatriated through banks and verified by CBN, he said.
“Everything is documented and even the names of Top 100 exporters are published in the CBN’s annual report.
“This is a case study for industry best practices. representing the non-oil export sector,’’ he said in a statement obtained by BusinessDay.
On the kind of stimulus that will spur the non-oil sector, Olarewaju said that it was imperative for the government to intervene and save the economy from a total collapse caused by coronavirus pandemic.
“Governments all over the world have come up with relief packages to balance the lives and livelihoods. “However, it does not have to be grandiose plans; simple, practical things can help.
“Look at China’s example. Their trade ministry increased the export tax rebate on 1500 products in March and reduced the processing time of disbursement of a rebate from 10 days to one week to ease the working capital funding. No wonder China is the No.1 exporter in the world,’’ he said citing an official circular issued by the Chinese government.
He said OPEXA was pleading with the Federal Government via ministries of trade and finance to sincerely implement extant policies and make good its commitments.
“Indeed, let me clarify that we are not asking for anything new or unreasonable. In fact, our wish list is straightforward.
“This means (a) the issuance of the outstanding Promissory Notes approved since Dec 2018 (b) disbursement of Export Credit Certificates for approved budget till 2020 and (c) provision of adequate budget and finally, half-yearly meetings of the Inter-ministerial Committee on EEG to assess impact.’
“In one word, we are only asking our policymakers to walk the talk and be accountable.’’
OPEXA boss lamented that COVID-19 pandemic had been having a devastating effect on the country’s economy, which has just emerged from the impact of two months of total inactivity.
“With the situation of things, IMF has projected that the Nigerian economy, which had barely recovered from a slowdown since 2016, will contract by 3.4 percent in 2020.
“To the sceptics this may even be an optimistic prediction in view of the devastating effect of COVID-19 on the economies of India (Nigeria’s No.1 buyer of crude oil so far), EU and North America. This will have a lasting impact on Nigeria’s export earnings in 2020.’’
Olarewaju noted that although the current administration had stepped up the diversification of the country’s economy, “it needs to be emphasized that it is the only way out.’’
According to him, agriculture and manufacturing sectors are the two pillars of the non-oil economy contributing about 22 percent and 13 percent, respectively to the GDP.
“The constraints facing these two sectors need to be removed to unlock their potential,’’ he said.
