The Federal Government of Nigeria has confirmed plans to settle N330.08 billion in outstanding claims under the Export Expansion Grant (EEG) scheme as it moves to restructure the programme and create a more sustainable framework for supporting Nigerian exporters.

The development follows repeated appeals from manufacturers and exporters, particularly the Manufacturers Association of Nigeria Export Group (MANEG), for the government to clear the unpaid EEG claims.

The Executive Director of the Nigerian Export Promotion Council (NEPC), Nonye Ayeni, disclosed the development during a stakeholder engagement on the EEG scheme held at the council’s headquarters in Abuja.

Ayeni said the meeting was organised to examine the outstanding liabilities, identify challenges affecting the operation of the scheme and develop recommendations for its restructuring.

She explained that while the government acknowledged the outstanding claims, payments would remain subject to the necessary verification and approval procedures.

According to Ayeni, the liabilities comprise previously approved claims under the Promissory Note mechanism, verified claims for the 2017–2020 and 2021–2022 periods, and stepped-down claims that are still awaiting verification and approval.

The Federal Executive Council approved a Promissory Note Programme valued at about N269.45 billion in May 2023 to cover verified EEG claims involving 195 beneficiary companies.

In addition, stepped-down claims estimated at N60.64 billion remained outstanding for 32 companies covering the 2017–2020 period. Combined, the two amounts bring the outstanding claims to approximately N330.08 billion.

Manufacturers, including members of MANEG, have continued to press for the settlement of the backlog, maintaining that delayed payments have affected exporters’ operations as well as the capacity of the incentive to promote competitiveness and expand Nigeria’s non-oil exports.

The government is also looking beyond the settlement of existing obligations, with plans for a new funding structure for the export incentive programme.

The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, said President Bola Tinubu had approved the establishment of a professionally managed Trade Facilitation Fund.

Under the proposed arrangement, 40 per cent of monthly collections from the Nigerian Export Supervision Scheme would be ring-fenced for strategic trade facilitation and export incentive interventions.

Oduwole said the structure was designed to establish a clearer relationship between available funding, verified export performance and government commitments to exporters.

The government also plans to increase the use of technology in administering the EEG scheme, including stronger data systems, improved verification processes and greater visibility over the status of exporters’ claims.

The Export Expansion Grant is a post-shipment incentive intended to improve the competitiveness of Nigerian products and raise the volume and value of non-oil exports.

The Federal Government of Nigeria said the proposed restructuring would tackle weaknesses that contributed to the build-up of outstanding claims while establishing a more predictable system for exporters.

Source: The Guardian