Again, FG Set To Restore EEG Scheme
Mr Olusegun Awolowo – Executive Director Nigeria Export Promotion Council (NEPC)[/caption]
The Federal Government has concluded plans to bring back the suspended Export Expansion Grant (EEG).
Mr Olusegun Awolowo, Executive Director Nigeria Export Promotion Council (NEPC) who was represented by Mr George Enyiekpon revealed this on Thursday during the on-going Finance Correspondents and Business Editor (FICAN) seminar powered by The Central Bank of Nigeria in Abakaliki, Ebonyi State.
Recall that the scheme was earlier introduced in1986 to reduce Nigeria’s dependence on oil both as source of income and foreign exchange earnings and was suspended by the Federal Government in 2014.
He explained that the recipients of the export grant held an instrument called Negotiable Duty Credit Certificate (NDCC) which are usually use in the payment of import and excise duties.
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Enyiekpon added that the suspension of the EEG had adversely affected export of manufactured goods which had drastically reduced the country’s volume of exports.
According to him, the inability of Nigerian exporters to meet delivery targets has destroyed the confidence built over the years by overseas importers of Nigerian products.
He said that Nigerian Export Promotion Council (NEPC) had severally met with the Vice President and the Minister of Trade, Commerce and Investment on the need to re-introduce EEG scheme to boost the manufacturing sector.
“We have made it clear to the government to re-introduce EGG to save many companies that are folding up. Some have folded up already. The Vice President has promised us that something will come up soon,” Enyiekpon said.
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According to him the exchange rate situation in the country had been difficult for business transactions, adding that the introduction of EEG scheme was also useful for the diversification of Nigeria’s revenue base.
He was upbeat that the policy would be a success after recording an increament in the volume of non-oil exports from 700 million dollars in 2005 to 2.9 billion dollars in 2013.
“It also led to an increase in value chain expansion in terms of processing manufacturing capabilities which resulted in significant new investments and job creation in the manufacturing sector,” he added.
