FG to restore EEG scheme soon

Indications have emerged that the Federal Government has concluded plans to resuscitate the suspended Export Expansion Grant (EEG) even as the special committee to review the scheme has submitted its report.

This was revealed on Thursday by Barrister George Enyiekpon who represented the Nigeria Export Promotion Council (NEPC) at the on-going CBN sponsored Seminar for members of the Finance Correspondents Association of Nigeria (FICAN)   and Business Editors in Abakaliki, Ebonyi State.

Business247 News Online recalls that the scheme was earlier introduced in1986 to reduce Nigeria’s dependence on oil both as a source of income and foreign exchange earnings.

He explained that the recipients of the export grant held an instrument called Negotiable Duty Credit Certificate (NDCC) which is usually used in the payment of import and excise duties.

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.

He said that 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.

According to him, the policy recorded a major success with the volume of non-oil exports increasing 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 said.

The scheme was suspended by the Federal Government in 2014.