The Federal Government has approved the disbursement of N308, 458, 160, 546.41 worth of Promissory Notes to 199 exporting companies under the Export Expansion Grant (EEG) Scheme.
This was disclosed in Abuja by the Executive Director/CEO of Nigerian Export Promotion Council (NEPC), Dr. Ezra Yakusak while issuing letters to some beneficiaries of the scheme.
The EEG is a post-shipment incentive scheme that was established by virtue of the Export (Incentives & Miscellaneous Provisions) Act, Cap E19, laws of the Federation of Nigeria.
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It is targeted at stimulating the increase in the volume and value of Made-in-Nigerian products in the international market.
The scheme is also intended to encourage export of value added products as againts raw agricultural commodities.
Economic pundits are of the view that with the recent approval for disbursement of the said sum, it is expected that the non-oil export activities will increase which will ultimately lead to increase in the country’s foreign exchange earnings.
The EEG tax credit is expected to bring some succour to non-oil exporters sector following series of delays that have plagued the release of the Export Expansion Grant
The mechanism is such that a financial credit is applied on the value of exports of products from Nigeria ranging from five per cent to 30 per cent.
The financial credit is not cash-funded, but provided as Negotiable Duty Credit Certificate which could be applied against import duties on other items.
It was suspended by the Federal Government in 2014 following allegations of abuse of the scheme by exporters.
However, after series of review of the scheme, it was reintroduced in form of tax credit by the government.
Speaking at the event, the NEPC Boss commended the Federal Government and the National Assembly for prompt response in approving the payment of the outstanding claims to the beneficiaries.
A breakdown of the amount showed that the sum of N193,456,239, 386.40 was approved for 133 beneficiaries of the scheme in respect of EEG outstanding claims for the period of 2017 to 2020 while the sum of N108,317,269, 008.76 was approved for 35 beneficiaries in respect of EEG backlogs of claims for the period of 2007 to 2016 respectively.
Similarly, the sum of N68,389, 000.00 was approved for 13 beneficiaries in respect of stocks of outstanding Negotiable Duty Credit Certificates (NDCC).
Furthermore, the sum of N6,617, 781,151.25 was approved for 69 beneficiaries in respect of short fall in the approved claims by the 8th National Assembly. .
However, the Council is still awaiting the approval and release of the sum of N60,635,088,940.63 being the EEG claims for 34 beneficiary companies from the NASS.