Stakeholders Demand More Budgetary Allocation For Export Grants

Stakeholders in the Nigeria export space have advocated the need to reform, reposition and ensure effective implementation of the Export Expansion Grant as a tool to deepen Nigeria’s exports.

Speaking during a webinar conference titled: “Analysis and Impact of Export Expansion Grant on Export Potential, Market Access and Export Competitiveness in Nigeria”, Stakeholders noted that it is imperative for the government to clear the outstanding grants owed to exporters in order to boost exporters interest in export business.

The President of the Nigeria Trade and Investment Centre, Olufemi Boyede, in his presentation noted that the EEG has been identified to be the most structured, most dependable and most functional of all the incentives to exporters.

It was identified in the Economic Recovery and Growth Plan of 2017-2020, as a key instrument of achieving diversification of the economy.

He explained that the EEG which is a post-shipment incentive system was established to enable exporters to expand their exports and related businesses more conveniently, make Nigerian non-oil export more competitive in the global markets, as well as facilitate greater and faster foreign market penetration.

He said the EEG has been recognized as the most structured of all the existing support schemes but not without its own peculiar problems.

He explained that the program has faced various administrative and technical conundrums overtime leading to its suspension nine times since inception.

According to him, the challenges associated with EEG include tough banking procedures, slow documentation process, delayed payment, poor administration and corrupt officials among others.

Boyede said, “The fastest route to a diversified economy is export development and growth. Unfortunately, with continued reduction in the budgetary allocation to EEG, Nigeria’s maritime sector (and by extension the country) is now at risk of losing its export operations and earnings to neighboring ports, while repatriated export proceeds are sure to dip further.”

The PDF-Bridge Program Manager, Titilola Akindeinde, in her remark said that it is unfortunate that non-oil exporters are being owed billions of naira in unpaid claims, having engaged in exports on the promise of the EEG which was set up to alleviate the financial burden on non-oil exporters.

She said, “This roundtable seek to develop an action plan that will ensure adequate incentivisation of export through a reformed EEG that works for non-oil exporters.

“The EEG and similar support schemes are created to make exports of Nigerian origin to withstand intense competition which characterizes the global market.

“However, business environment in Nigeria makes production and export from the country naturally uncompetitive.”

She noted that it has become imperative for the Nigerian Government to subject the scheme to thorough review for a comprehensive reform with clear implementation strategy and guidelines in order to permanently address the issues that have led to truncation of its implementation since inception.

“Increase commitments in terms of investment to non-oil sector is fundamental to increasing non-oil export in the mix of Nigeria’s export basket”.

“The government must increase budgetary allocation to EEG and similar incentives designed to grow non-oil sector in Nigeria,” she added.

Bamidele Ayemibo Immediate past chairman, LCCI Export Group, said there is need for the development of programs that can lead to growth and a more competitive export space in Nigeria.

He stressed on the need to promote export through credit insurance, increased access to foreigm exchange at lower rate”.

The Deputy Director, Incentive Division of the NEPC, Lawal Dalhatu, said that efforts are ongoing to address the various challenges confronting exports in Nigeria, adding about N50bn is being channelled through the Ministry of Industry, Trade and Investment to support the operations of the exporters and manufacturers.